ALLETE Closes on $270 Million Sale of U.S. Water Services to Kurita
March 27 2019 - 6:30AM
Business Wire
Sale proceeds will support ALLETE growth in the
clean-energy sector
ALLETE Inc. (NYSE:ALE) announced today it has closed on the $270
million sale of U.S. Water Services Inc. to Kurita Water Industries
Ltd., a leading international water-management company
headquartered in Tokyo, Japan.
Based in St. Michael, Minnesota, U.S. Water, an integrated
water-solutions company, serves a diverse mix of about 5,000
customers to optimize system performance, reduce water and energy
use, and improve efficiency. It was acquired by ALLETE in 2015.
Today’s sale supports ALLETE’s long-term diversification strategy
that includes expanding investments in clean-energy opportunities
with an average annual earnings growth objective of 5 percent to 7
percent.
“Proceeds from the sale will be primarily reinvested in growth
initiatives at ALLETE Clean Energy and our Regulated Operations,
reducing the need for equity issuances,” said ALLETE Chief
Financial Officer Bob Adams. “This sale will support U.S. Water
Services’ expansion and growth while enabling ALLETE to allocate
capital to growth initiatives within ALLETE and ALLETE Clean
Energy, which has become ALLETE’s second-largest net income
contributor.”
Under ALLETE’s four-year ownership and continued investment,
U.S. Water Services has grown significantly, becoming a world-class
industrial water-service provider in North America through an
aggressive expansion in geography, end markets and service
offerings. The investments included the acquisition of three water
services companies over the past 36 months.
ALLETE announced the agreement to sell U.S. Water to Kurita in
early February. The sale went ahead as planned following receipt of
the necessary regulatory approvals.
ALLETE Inc. is an energy company headquartered in Duluth,
Minnesota. In addition to its electric utilities, Minnesota Power
and Superior Water, Light and Power of Wisconsin, ALLETE owns
ALLETE Clean Energy, based in Duluth; BNI Energy, based in
Bismarck, N.D.; and has an 8 percent equity interest in the
American Transmission Co. More information about ALLETE is
available at www.allete.com. ALE-CORP
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190327005025/en/
Investor Contact:Vince Meyer218-723-3952vmeyer@allete.com
Allete (NYSE:ALE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Allete (NYSE:ALE)
Historical Stock Chart
From Sep 2023 to Sep 2024