Co-op Offers Florida Water $450 million for Water, Sewer Systems

Florida Government Utility Authority has offered Florida Water Services $450 million for the company's 152 water and sewer systems – $70 million less than initially proposed.

The state co-op's board unanimously agreed Aug. 29 to make the offer and set a public hearing on the sale for Sept. 19.

The co-op will actually pay $419 million to Florida Water if the deal is accepted. Leaders in Duval, Fla., which has a utility valued at $31 million, dropped out as the final offer was being calculated.

American Water Services, the company contracted to run the systems for the co-op, will buy $2 million worth of buildings and equipment from Florida Water. Company officials also agreed to a 90-day, non-compete contract with the co-op, meaning American Water officials cannot make an offer on Florida Water's systems.

If Florida Water accepts the offer, co-op officials estimate it will take 90 to 120 days to close the sale and issue bonds.

With bond interest, the cost of all 152 systems is $516 million. The number includes millions of dollars in improvements to each system.

Source: PR Newswire