Jul 24, 2003
Florida Water Services Agrees To Sell Seven Systems For $296 Million
Florida Water Services Agrees To Sell Seven Systems For $296 Million
Florida Water Services Agrees To Sell Seven Systems For $296 MillionJuly 24, 2003
DULUTH, Minn.--ALLETE, Inc. (NYSE: ALE) announced today that its subsidiary, Florida Water Services Corporation, has agreed to sell seven of its Florida water and wastewater systems to governmental entities in Florida for $296 million payable at closing, resulting in an after-tax gain of $55 million. The sale is expected to close by the end of 2003 pending satisfaction of certain contingencies and regulatory approvals in Florida.
The water systems to be sold through this purchase agreement include those serving the counties of Osceola, Hernando, Citrus, Lee, and Charlotte, and the communities of Marco Island and Palm Coast. The cash proceeds after transaction costs, retirement of Florida Water debt, and payment of income taxes are estimated at $158 million, and will be used to retire debt at ALLETE.
"After much time and effort we believe we have an agreement that will benefit all parties," said Dave Gartzke, ALLETE Chairman, President and CEO. "Local governments will have the opportunity to own and operate their water systems, and ALLETE receives appropriate value for its properties."
The purchase agreement was signed today by representatives of Florida Water Services and the acquiring communities and represents about two-thirds of Florida Water's assets. Florida Water Services continues to work with local governments interested in purchasing remaining water systems. If interested governmental entities cannot be found, the remaining systems will be sold to a private buyer.
ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE's holdings include ADESA, the second largest wholesale vehicle auction network in North America; AFC, the leading provider of independent auto dealer financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States; and significant real estate holdings in Florida. For more information about ALLETE, visit the company's Web site at www.allete.com.
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
Investor Contact:
Tim Thorp
218-723-3953
tthorp@allete.com
DULUTH, Minn.--ALLETE, Inc. (NYSE: ALE) announced today that its subsidiary, Florida Water Services Corporation, has agreed to sell seven of its Florida water and wastewater systems to governmental entities in Florida for $296 million payable at closing, resulting in an after-tax gain of $55 million. The sale is expected to close by the end of 2003 pending satisfaction of certain contingencies and regulatory approvals in Florida.
The water systems to be sold through this purchase agreement include those serving the counties of Osceola, Hernando, Citrus, Lee, and Charlotte, and the communities of Marco Island and Palm Coast. The cash proceeds after transaction costs, retirement of Florida Water debt, and payment of income taxes are estimated at $158 million, and will be used to retire debt at ALLETE.
"After much time and effort we believe we have an agreement that will benefit all parties," said Dave Gartzke, ALLETE Chairman, President and CEO. "Local governments will have the opportunity to own and operate their water systems, and ALLETE receives appropriate value for its properties."
The purchase agreement was signed today by representatives of Florida Water Services and the acquiring communities and represents about two-thirds of Florida Water's assets. Florida Water Services continues to work with local governments interested in purchasing remaining water systems. If interested governmental entities cannot be found, the remaining systems will be sold to a private buyer.
ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE's holdings include ADESA, the second largest wholesale vehicle auction network in North America; AFC, the leading provider of independent auto dealer financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States; and significant real estate holdings in Florida. For more information about ALLETE, visit the company's Web site at www.allete.com.
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
Investor Contact:
Tim Thorp
218-723-3953
tthorp@allete.com