Divestiture • Utilities

Essential Utilities Acquires Heater Utilities

On June 1, 2004, Essential Utilities acquired utilities company Heater Utilities from Allete for 48M USD

Acquisition Context
  • This is Essential Utilities’ 1st transaction in the Utilities sector.
  • This is Essential Utilities’ 2nd largest (disclosed) transaction.
  • This is Essential Utilities’ 1st transaction in the United States.
  • This is Essential Utilities’ 1st transaction in North Carolina.

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M&A Deal Summary

Date June 1, 2004
Target Heater Utilities
Sector Utilities
Buyer(s) Essential Utilities
Sellers(s) Allete
Deal Type Divestiture
Deal Value 48M USD

Target Company

Heater Utilities

Cary, North Carolina, United States
Heater Utilities Inc. owns and operates small water systems. The company provides water supply and wastewater treatment services.
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Buyer Overview 1

Buyer

Essential Utilities

Bryn Mawr, Pennsylvania, United States

Category Company
Founded 1886
Sector Utilities
Revenue 2.1B USD (2024)
DESCRIPTION

Essential Utilities is a water, waste water and natural gas providers, serving approximately 5 million people across 9 states under the Aqua and Peoples brands. Essential represents an infrastructure company uniquely positioned to have a powerful impact on improving reliability, quality of life and economic prosperity for all. Essential Utilities was founded in 1886 and is based in Bryn Mawr, Pennsylvania.


Deal Context for Buyer #
Overall 1 of 5
Sector: Utilities 1 of 5
Type: Divestiture 1 of 1
State: North Carolina 1 of 1
Country: United States 1 of 5
Year: 2004 1 of 1
Size (of disclosed) 2 of 2
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-10-16 Saddle Club Water Company

Weatherford, Texas, United States

Saddle Club Water Company, Inc. is a provider of direct water services.

Buy -

Seller Profile 1

SELLER

Allete

Duluth, Minnesota, United States

Category Company
Founded 1906
Sector Utilities
Revenue 1.9B USD (2023)
DESCRIPTION
Entrance to ALLETE's corporate headquarters in downtown Duluth, Minnesota.
Entrance to ALLETE's corporate headquarters in downtown Duluth, Minnesota.

Allete is an energy company operating minnesota power, an electric utility that serves 150,000 residents, 14 municipalities, and industrial customers. ALLETE was founded in 1906 and is based in Duluth, Minnesota.


Deal Context for Seller #
Overall 1 of 3
Sector: Utilities 1 of 1
Type: Divestiture 1 of 3
State: North Carolina 1 of 1
Country: United States 1 of 3
Year: 2004 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-11-22 Blandin Paper Electric Generating Facilities

United States

landin Paper Electric Generating Facilities engages in providing supplemental retail electric service.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-30 ADESA

Carmel, Indiana, United States

ADESA is a provider of whole car auctions and salvage vehicle auctions in North America. Through the largest network of automobile auction locations in North America, the Company facilitates the sale of used and salvage vehicles through physical, online, and hybrid auctions. ADESA is also a provider of short-term inventory-secured financing, known as floorplan financing, primarily to independent used vehicle dealers. ADESA is based in Carmel, Indiana.

Sell -