Virginia American Water begins wastewater services

Alexandria-based Virginia American Water has acquired Dale Service Corp., a wastewater utility company in Northern Virginia, in a deal worth $27.7 million.

The deal marks Virginia American Water’s entry into the wastewater services market.

Dale Service has about 20,000 customers, serving a population of about 50,000 people. Its territory overlaps Virginia American Water’s existing service area in Prince William County.

Twenty-four Dale Service employees will join Virginia American Water as a result of the transaction.

As part of the purchase, which was approved by the Virginia State Corporation Commission, Virginia American Water will operate 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 wastewater customers.

Virginia American Water is a subsidiary New Jersey-based American Water Works Co. Inc., a publicly traded company.

“This acquisition is a great example of how we grow our business in areas that make sense for the company and its customers,” Jeff Sterba, president and CEO of American Water, said in a statement. “By expanding into the wastewater market in our existing water service footprint, we create greater efficiency and economies of scale, which benefits our customers.”

Virginia American Water now provides water and wastewater services to more than 300,000 people.