Kurita Water Industries Ltd. (TSE:6370) entered into a stock purchase agreement to acquire U.S. Water Services, Inc. from ALLETE Enterprises, Inc. for $270 million on February 8, 2019. The purchase price is subject to adjustment at closing, such as for changes in working capital. Kurita Group will combine U.S. Water’s customer base and sales network with its own products and services such as pure water supply and wastewater reclamation. The net sales of U.S. Water Services, Inc. for the fiscal year ended December 31, 2018 were $172.1 million and total common equity was $193 million. The acquisition is subject to customary closing conditions, approval from the board of Kurita Water Industries Ltd. and regulatory approvals including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. As of February 8, 2019, the transaction was approved by the board of Kurita Water Industries Ltd. The transaction is expected to close by the end of the first quarter 2019. Proceeds from the transaction will be primarily reinvested in growth initiatives at both the regulated operations of ALLETE and ALLETE Clean Energy. In addition, a portion of the proceeds may be used to implement a common stock repurchase program. This acquisition is expected to increase Kurita Group’s sales in the United States by approximately four times. Advisory fee of approximately $6.4 million was paid in the transaction. Houlihan Lokey, Inc. acted as financial advisor to the ALLETE, Inc. Jeff Schrepfer and Gary Smith of Morrison & Foerster acted as legal advisor to Kurita Water Industries Ltd. Kurita Water Industries Ltd. (TSE:6370) completed the acquisition of U.S. Water Services, Inc. from ALLETE Enterprises, Inc. on March 26, 2019.