Sale proceeds will support ALLETE growth in the clean-energy sector
DULUTH, Minn.--(BUSINESS WIRE)--Mar. 27, 2019--
ALLETE Inc. (NYSE:ALE) announced today it has closed on the $270 million
sale of U.S. Water Services Inc. to Kurita Water Industries Ltd., a
leading international water-management company headquartered in Tokyo,
Japan.
Based in St. Michael, Minnesota, U.S. Water, an integrated
water-solutions company, serves a diverse mix of about 5,000 customers
to optimize system performance, reduce water and energy use, and improve
efficiency. It was acquired by ALLETE in 2015. Today’s sale supports
ALLETE’s long-term diversification strategy that includes expanding
investments in clean-energy opportunities with an average annual
earnings growth objective of 5 percent to 7 percent.
“Proceeds from the sale will be primarily reinvested in growth
initiatives at ALLETE Clean Energy and our Regulated Operations,
reducing the need for equity issuances,” said ALLETE Chief Financial
Officer Bob Adams. “This sale will support U.S. Water Services’
expansion and growth while enabling ALLETE to allocate capital to growth
initiatives within ALLETE and ALLETE Clean Energy, which has become
ALLETE’s second-largest net income contributor.”
Under ALLETE’s four-year ownership and continued investment, U.S. Water
Services has grown significantly, becoming a world-class industrial
water-service provider in North America through an aggressive expansion
in geography, end markets and service offerings. The investments
included the acquisition of three water services companies over the past
36 months.
ALLETEannounced
the agreement to sell U.S. Water to Kurita in early February. The
sale went ahead as planned following receipt of the necessary regulatory
approvals.
ALLETE Inc. is an energy company headquartered in Duluth, Minnesota. In
addition to its electric utilities, Minnesota Power and Superior Water,
Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in
Duluth; BNI Energy, based in Bismarck, N.D.; and has an 8 percent equity
interest in the American Transmission Co. More information about ALLETE
is available at www.allete.com.
ALE-CORP
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190327005025/en/
Source: ALLETE Inc.
Investor Contact:
Vince Meyer
218-723-3952
vmeyer@allete.com