Obermayer Advises Sadsbury Township Municipal Authority on Successful Acquisition of Wastewater System by Pennsylvania American Water

The Obermayer team provided comprehensive legal counsel to the Sadsbury Township Municipal Authority during the sale of its wastewater collection system to Pennsylvania American Water. The $990,000 sale, approved by the Pennsylvania Public Utility Commission (PUC) on September 12, 2024, involves a system serving approximately 250 customers, which will now be operated by Pennsylvania American Water.

Obermayer advised the clients from the initial structuring of the transaction and appropriately valuing the assets to negotiating the asset purchase agreement and securing PUC approval of the sale.  Notably, the transaction’s price was based on depreciated original cost and not fair market value. This was a collaborative team effort at Obermayer, involving attorneys from business and finance, land use, and litigation.  The Obermayer team coordinated effectively with the client’s leadership and solicitor in delivering this tremendous win for Sadsbury Township. Given the environmental risks and unforeseen costs associated with managing and maintaining a wastewater system with a small number of customers, residents are now assured that service is in the capable hands of a very large wastewater utility.

For more details on the acquisition, please refer to the American Water press release here.