California group to spend $7.7M for Kaanapali Water

Advertiser Staff

California Water Service Group, the largest private water company in the western United States, said yesterday it has agreed to buy the Kaanapali Water Corp. on Maui for $7.7 million.

Kaanapali Water serves 500 customers, including the Maui Marriott Resort and The Westin Maui, as well as eight other resorts and eight condominium projects.

The company had sales of $3.3 million last year and before-tax income of $1.22 million, California Water Service said.

Pittsburgh-based DQE, owner of Kaanapali Water, said the sale should close by late 2003, contingent on approval from the Hawai'i Public Utilities Commission.

"We are very excited about establishing a presence in yet another state," said Peter C. Nelson, president and CEO of California Water Service, which runs water companies in California, Washington and New Mexico.

California Water Service said it will retain all employees on Maui and form a Hawai'i-based subsidiary to operate the system.