American Water acquires Marcellus Shale water supplier
American Water Works Company, Inc. of Voorhees on Thursday completed its acquisition of Marcellus Shale water-service provider Keystone Clearwater Solutions of Hershey, Pa. The acquisition, announced in June, values Keystone at $130 million. American is acquiring 95 percent of the stock for $123.5 million.
American Water Works Company, Inc. of Voorhees on Thursday completed its acquisition of Marcellus Shale water-service provider Keystone Clearwater Solutions of Hershey, Pa. The acquisition, announced in June, values Keystone at $130 million. American is acquiring 95 percent of the stock for $123.5 million.
Keystone, founded in 2009, is owned by Rex Energy Corp., a shale-gas producer based in State College. Rex Energy's 60-percent share of the company will generate net proceeds of $66 million, which it says it will use to reduce debt and for general corporate purposes.
Keystone supplies shale-gas producers in Pennsylvania, West Virginia and Ohio, which require large amounts of water for hydraullic fracturing operations. Susan Story, Americans' president and chief executive, says the acquisition represents the company's belief that shale-gas production "will continue to grow for many years."
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