Connecticut Water Co. has moved from providing services to Heritage Village Water Co. in Southbury to becoming its owner. The Clinton-based water utility has agreed to purchase Heritage Village for $15.8 million.
Under the agreement, the acquisition will be executed through a stock-for-stock merger transaction.
Connecticut Water’s unregulated water service provider, New England Water Utility Services Inc., has been the contract operator of Heritage Village Water Co.’s water and wastewater operations and has been providing support services for more than a decade.
Holders of Heritage Village common stock will receive shares of Connecticut Water’s common stock in a tax-free exchange. Connecticut Water will also assume Heritage’s $4.8 million in debt.
Heritage Village Water serves about 4,700 water customers in the communities of Southbury, Middlebury and Oxford, and 3,000 wastewater customers in Southbury. The Heritage Village Water Company’s wastewater system is the only private wastewater utility in Connecticut and is regulated by Connecticut’s Public Utilities Regulatory Authority. All Heritage employees will be invited to join the Connecticut Water team in their current positions.
