On March 16, 2020, Peoples was officially acquired by Essential Utilities Inc. Peoples will remain its name and identity and operate under Essential.
This afternoon, Essential issued a press release to announce that the acquisition of Peoples has officially been completed. After many months of diligent planning and teamwork, this is a proud moment and I am happy to write to you as one combined team.
Yesterday we met with investors in New York and provided our guidance on earnings growth for the next three years.
On January 16th, 2020, the Pennsylvania PUC approved Aqua America's request to acquire Peoples. The two companies will fall under a new parent company, Essential Utilities. The announcement also introduced Essential's executive leadership team, which will become effective when the transaction closes.
You can read the press release about the announcement here, along with the letter from Essential CEO Chris Franklin below.
As you prepare for the fast approaching winter season, we know how the pace of work begins to heighten even more and how the work you do everyday becomes even more challenging.
It's been a busy summer at Aqua and Peoples. We've continued our hard work to provide customers with the utility services they need.
We continue down the path of getting all regulatory approvals necessary to close the transaction with Aqua.
With each monthly update, we get closer to bringing Peoples and Aqua together. In April, we successfully completed two important steps toward closing that I'd like to share with you.
In the month since the last update, we’ve completed several milestones and made important headway toward bringing Aqua and Peoples – two great companies – together.
Today, Aqua announced they will receive an approximately $750 million investment by Canada Pension Plan Investment Board, marking an important step in obtaining permanent financing for the purchase of Peoples.
Aqua America announced on October 23rd it will acquire Peoples Natural Gas, a regulated utility headquartered in Pittsburgh, Pennsylvania with operations in Kentucky and West Virginia. This partnership establishes a leading provider of essential regulated utility services, and it distinguishes Aqua as the only publicly traded U.S. water utility to also own a natural gas utility.
No. This acquisition does not rely on headcount reductions for Aqua or Peoples.
We anticipate future opportunities for enhanced career growth and development for employees of both companies.
No. Benefits packages, including medical insurance and retirement plans, will not change in 2019 for employees of either company.
Going forward, Aqua, Peoples, and the resulting holding company will be committed to providing competitive benefits for all employees, just like today.
Compensation programs, including APIP for eligible employees, will not change in 2019.
Any future changes will be communicated to all employees well in advance of an effective date.
We do not expect any change in the day-day roles or responsibilities for most employees.
What we do anticipate are future opportunities for enhanced career growth and development for employees of both companies.
As a publicly traded company, Aqua America is looking for investors in the new combined company. Investors will receive stock in the company in return for their investment. Investment efforts are running parallel with all the regulatory efforts in Pennsylvania, West Virginia and Kentucky that are needed to finalize Peoples' sale to Aqua.
The announcement of this major investment is great news for everyone involved! It highlights confidence in the success of the new combined company and provides financial support for the initiatives, such as our pipeline replacement program, which will allow us to continue to provide outstanding service to our customers.
