Allete closes $270M sale of U.S. Water Services

Minnesota-based energy company Allete said Wednesday it’s closed the $270 million sale of U.S. Water Services to Kurita Water Industries Ltd., a Japan-based water-management company.

U.S. Water is an integrated water-solutions company which serves roughly 5,000 customers by optimizing system performance, reducing water and energy use, and improving efficiency. It was acquired by Allete in 2015, Kallanish Energy reports.

Wednesday’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% to 7%.

“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 post appeared first on Kallanish Energy News.