Debt ridden American Water starts selling off assets
America's largest investor-owned water and wastewater utility company has today (January 24) announced plans to sell off its businesses in Arizona and New Mexico.
American Water, which has reported debts of close to $5.5 billion, will sell all of its services providing regulated water and wastewater in Arizona and New Mexico, for an estimated sale price of $470 million.
American Water, founded in 1886, said it plans to use the proceeds from the sale to 'reduce both equity and debt financing'.
"This transaction allows us to direct our focus to those operations where we can best serve customers and meet business objectives," said Jeff Sterba, president of American Water.
"Additionally, with this transaction we do not anticipate the need for an equity offering in 2011."
American Water serves approximately 174,000 customers in Arizona and New Mexico and employs more than 220 employees.
With headquarters in Voorhees, New Jersey the company employs more than 7,000 workers.