American Water Works subsidiary agrees to purchase Butler Area Sewer Authority wastewater system

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Pennsylvania American Water, a subsidiary of American Water Works ($NYSE:AWK) Company, Inc. , has agreed to purchase the wastewater system of Butler Area Sewer Authority for $231.5 million. This is a great move for both parties involved. They also gain a wastewater system that is in good condition and has been well-maintained by BASA. For BASA, this sale will allow them to pay off their debt and have some extra money to put towards other projects.

They will also be able to maintain their operations center and keep all of their employees. This is a win-win situation for both organizations. Pennsylvania American Water gains a valuable asset and expands their customer base, while BASA is able to reduce their debt and continue to serve their community.

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“This is an important step forward in our strategy to grow our water and wastewater operations in Pennsylvania,” said Walter Lynch, president and CEO of American Water. “The addition of the Butler Area Sewer Authority’s wastewater system will enable us to better serve our customers in this region and expand our footprint in the state.” The Company is also the largest publicly traded U.S. water and wastewater utility.

VI Analysis

The company’s fundamental indicators reflect its long-term potential.

However, the company does have some risk factors to consider. Overall, American Water Works is a low-risk investment in terms of financial and business aspects. The company has strong fundamentals and a strong track record of success. However, investors should be aware of the company’s high debt levels and keep an eye on its future cash flow in order to ensure that it can continue to meet its obligations.

Summary

Aqua Pennsylvania, Inc. provides water and wastewater services to approximately 3 million people in Pennsylvania. American Water Works is the largest publicly traded water and wastewater utility company in the United States.