American States Water Co. on Tuesday said that it has agreed to sell its Arizona operation to Epcor Water (USA) Inc. for $35 million.
Chaparral City Water Co. is a wholly-owned subsidiary of San Dimas-based American States and serves 13,000 customers in Fountain Hills and Scottsdale, both in Arizona.
American States said it will get about $29 million in cash at the closing; the purchase price includes assumption of about $6 million of long-term debt. Epcor Water is a wholly owned subsidiary of Epcor Utilities Inc. in Alberta, Canada.
“Chaparral customers will continue to receive the same excellent customer service and quality water as they have been receiving all along,” said Chief Executive Robert Sprowls in a statement. “We will work with Epcor to ensure the most seamless transition possible for customers.”
Shares were down 5 cents, or less than a percent, to $31.89 in midday trading on the New York Stock Exchange.