DALE CITY, Va. — The Dale Service Corporation will be sold to the American Water Works Company.
If the $27.7 million sale of the Virginia American Water subsidy is approved by the Virginia State Corporation Commission, it will mark the first time Virginia American Water will be in the wastewater business.
“The acquisition of Dale Service Corporation is an excellent fit with our Virginia operations, as it allows us to create greater efficiency and economies of scale in providing wastewater service to an area where we already provide water service to customers,” said Jeff Sterba, president and CEO of American Water in a press release.
The purchase agreement between the two companies was signed this week.
More in a press release:
Dale Service Corporation currently provides wastewater collection and treatment services to approximately 20,000 customers (a population of about 65,000) in the Dale City portion of Prince William County. The company operates two wastewater treatment plants with a combined capacity of 9.2 million gallons per day. Since 1966, Virginia American Water has been providing water services to most of the Dale Service Corporation wastewater customers.
Dale Service Corporation’s 22 employees are expected to be retained as part of the deal, which is expected to be complete later this year.
In addition to Prince William County, Virginia American Water also services Alexandria, Hopewell, and Warsaw.
The wastewater business is nothing new for Virginia American Water’s parent company, American Waterworks, a company representative said. American waterworks “has extensive experience in providing wastewater services as well as high-quality drinking water services. American Water Works is the largest publicly traded water and wastewater utility in the United States.”
