New Mexico American Water will be sold to a Canadian utility company in an estimated $470 million deal, the company announced Monday in a press release.
In the agreement, EPCOR Water (USA) Inc. would purchase companies providing water and wastewater services in Arizona and New Mexico, according to the press release.
American Water, which stands to make a $20 million profit from the deal, said in the release it will use the proceeds to reduce “equity and debt financing.”
The agreement requires approval by public utility commissions in both states.
American Water serves approximately 174,000 customers in Arizona and New Mexico, employing more than 220.
There are more than 17,000 NMAW customers in New Mexico, with about 90 percent of the company’s service provided within a 20 mile radius of Phoenix.
Pledging to make the transition as seamless as possible, EPCOR said it anticipates employees will “continue to operate these systems within the EPCOR family,” the release said.
EPCOR USA is a subsidiary of EPCOR Utilities, Inc., which the release said builds owns and operates water, wastewater treatment facilities and electric transmission and distribution networks providing water and wastewater services to more than a million people in 70 west Canadian communities.