Artesian Resources Corp. and its wholly-owned subsidiary, Artesian Wastewater Management, Inc., agreed to acquire Tidewater Environmental Services, Inc., a Delaware-based regulated wastewater utility owned by New Jersey-based Middlesex Water Company, for $6.4 million.
The transaction is subject to approval by the Delaware Public Service Commission and other customary closing conditions. The agreement is expected to be finalized before December 31.
Artesian Wastewater Management, Inc. will purchase all of the stock of the Tidewater unit,, which serves 3,600 retail wastewater customers in Sussex County.
The deal will double the number of Artesian wastewater customers in Delaware.
Artisan and Tidewater have been rivals in providing water and wastewater services in rapidly developing areas of Delaware.
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and related services, on the Delmarva Peninsula.
Artesian Water Company, the principal subsidiary, has been providing water service since 1905.
Artesian supplies 8.3 billion gallons per year through 1,368 miles of water main to nearly a third of Delaware residents.
Artesian Wastewater Management, Inc. is a wholly-owned regulated subsidiary that owns wastewater collection and treatment infrastructure and provides wastewater services to over 3,000 customers in Delaware as a regulated public wastewater service company.
Artesian began providing wastewater service to customers in 1998, designing and operating two wastewater treatment facilities for the Town of Middletown. Artesian currently treats, processes, and disposes of over 1.3 billion gallons of wastewater annually from homes and businesses throughout the state at six different facilities.