Heritage Water Deal Heads to the Courts: Report

SOUTHBURY, CT — The town of Southbury has right of first refusal to buy Heritage Water, but officials say Connecticut Water Service, which agreed to spend $16.1 million for the company, has structured the deal in away that makes it impossible for the town to realistically structure an offer, the Republican-American reports.

Besides paying $16.1 million for Heritage Water, Connecticut Water Service also agreed to taken on $4.8 million of debt, the Rep-Am reports, adding it's a stock-for-stock merger.

Town officials say they can't compete with a non-cash offer and filed a motion in court objecting to the proposal. However, Connecticut Water Service officials told the Rep-Am that the town is demanding a $1 million payment to drop its right of first refusal.

Heritage Water serves a portion of water and wastewater customers in Southbury, Middlebury and Oxford.

Read the full Rep-Am story here.

Written by Brian McCready (Patch National Staff)

(Editor's Note: This story first ran previously but here it is again in case you missed it.)