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Algonquin Power and Utilities makes U.S. water utility acquisition

The Canadian Press

OAKVILLE, Ont. - Algonquin Power and Utilities Corp. (TSX:AQN) said Friday it has signed a deal to buy regulated water distribution utility Park Water Co. for US$327 million, including the assumption of US$77 million in debt.

Algonquin is acquiring the U.S. company which owns and operates three water utilities in Southern California and Western Montana from Western Water Holdings, a subsidiary of Carlyle Infrastructure.

The deal is subject to state and federal regulatory approval as well as other conditions and is expected to close in the second half of next year.

"The acquisition of Park Water strategically expands our utility presence in California and marks our entry into the state of Montana," Algonquin Power and Utilities chief executive Ian Robertson said in a statement.

Algonquin Power and Utilities owns and operates water, electricity and natural gas utilities in the U.S. through its Liberty Utilities subsidiary as well as hydroelectric, wind energy and thermal power projects.