Allete signed a definitive agreement to purchase U.S. Water Services Inc., an integrated industrial water management company. Based in Duluth, Minn., Allete remains predominantly a regulated utility through Minnesota Power, Superior Water, Light & Power and an investment in the American Transmission Co.
Initially, Allete will purchase 87 percent of U.S. Water for $168 million, based on a total implied enterprise value of $194 million. Current employees and management of U.S. Water will continue to own the remaining 13 percent. Allete will purchase the remaining 13 percent interest in the future for a contingent amount based on U.S. Water’s future earnings.
U.S. Water’s management team is expected to remain in place, as will the company’s St. Michael, Minn. headquarters.