New Hampshire firm looking to purchase public water supply company for Millbury, Oxford as part of wider $100M deal
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A Unitil facility in Lunenburg
The communities of Millbury and Oxford could soon have a new public water supplier, as New Hampshire-based Unitil Corp. is looking to purchase the current supplier, Aquarion Water Co. of Massachusetts, as part of a wider deal involving communities across two states.
The potential switch to Unitil comes as the firm has entered a definitive agreement with Aquarion Water Co. entities in Massachusetts and New Hampshire to purchase their operations for $100 million, according to a May 6 press release from Unitil announcing the agreement.
This deal comes after a separate transaction in January which saw Eversource, Aquarion’s former owner, sell Aquarion’s operations in Massachusetts, New Hampshire, and Connecticut to Aquarion Water Authority, a newly-created standalone water authority.
Aquarion’s operations in Massachusetts distribute water to about 12,000 customers, according to a notice published by the Massachusetts Department of Public Utilities on May 23. In addition to Millbury and Oxford, the Massachusetts municipalities served by Aquarion are Dover, Plymouth, and Sheffield.
“Our acquisition of the Aquarion Companies presents a unique opportunity to expand into a complementary regulated utility service in states where we currently operate,” Thomas Meissner, Unitil chairman and CEO, said in the May 6 press release. “We look forward to welcoming the Aquarion Companies’ dedicated, locally managed teams to Unitil and continuing the high quality of service provided to the communities served in Massachusetts and New Hampshire.”
Both the January sale by Eversource and the May transaction are still awaiting public approvals in Massachusetts, with a Department of Public Utilities virtual public hearing scheduled for June 25 at 2 p.m. to receive comments regarding Unitil’s request for approval of the deals.
The Massachusetts aspect of the translation is worth approximately $44.3 million, according to the Department of Public Utilities.
Aquarion Water would operate as a wholly-owned subsidiary of Unitil, with the firm telling the state local employees that they will retain their positions with comparable compensation and benefits and that Unitil is not proposing any changes to water rates or other terms of service.
CORRECTION: An earlier version of this article stated Unitil's purchase of Aquarion's assets involved communities in three states. While the January sale involving Eversource did include assets in Massachusetts, New Hampshire, and Connecticut, the May transaction saw Unitil purchase Aquarion assets in Massachusetts and New Hampshire only.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
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