ALLETE to acquire interest in U.S. Water Services

Utility services company ALLETE, Inc. (Duluth, MN) and U.S. Water Services, Inc. (St. Michael, MN) have signed a definitive agreement whereby ALLETE will acquire an 87% interest in U.S. Water Services for $168 million. Under the terms of the agreement, the current employees and management of U.S. Water will own the remaining 13% of the company for the time being, but ALLETE will eventually acquire that interest for a contingent amount based on U.S. Water’s future earnings. U.S. Water provides integrated water management services, including chemicals, equipment, engineering, and related services, for more than 3,600 industrial customers, including Fortune 500 companies. The key value proposition in the deal for ALLETE is a better ability to provide customers with improved cost and energy efficiency in their water management activities, according to Al Hodnik, chairman, president, and CEO of ALLETE. “Water and energy are intricately linked, and attention to that nexus is increasing,” said Hodnik. “Just as with energy, regulation and social expectations will increasingly drive water conservation, especially as water scarcity becomes a growing challenge. We believe the demand for sustainable water management solutions will increase over time as large users seek ways to enhance efficiency and improve their bottom line.”