WEST COVINA, Calif., Oct. 2, 2000—Southwest Water Co. acquired two water and wastewater utilities for $4 million in common stock on October 1, 2000.
The acquisition of Windermere Utility Co. and Hornsby Bend Utility Co. will enable Southwest Water to expand its already strong presence in a rapidly growing area in the suburbs of Austin, Texas. The Texas Natural Resources Conservation Commission has approved the transaction.
"Owning these utilities is of significant benefit to Southwest Water," said Anton Garnier, president and CEO. "They serve an area that has been designated as a preferred growth corridor by the City of Austin. Therefore, we are very excited about the opportunities for future expansion."
Windermere and Hornsby Bend currently provide water and wastewater service to approximately 4,000 homes. ECO Resources Inc., Southwest Water's contract operations subsidiary, will continue to provide management and operational services to the two utilities.
Currently, ECO Resources manages and operates approximately 40 water and wastewater systems in the immediate Austin area, providing service to approximately 100,000 people.
Southwest Water has another investment in Austin's preferred growth corridor. The company is a 50 percent owner of a venture, Metro H2O, which anticipates providing wholesale water and wastewater services in the next 10 to 18 months. To date, three governmental entities have signed 40-year agreements with Metro H2O.
