California Water to Buy 2 Washington Systems

California Water Service Group, the largest publicly traded water utility in the state, agreed to buy two water systems in Washington for $11.5 million in stock and assumed debt. The acquisitions would be California Water’s first outside its home state. The company said it would exchange 315,000 shares valued at about $8.5 million for Harbor Water Co. and South Sound Utility Co., which combined sell water to about 42,000 people in western Washington. California Water would take on about $3 million of debt. San Jose-based California Water, which had 1998 sales of $186.3 million, said the acquisitions would increase its annual revenue by $3.4 million and make it Washington’s largest publicly traded water utility. California Water’s shares fell 38 cents to close at $27.38 on the NYSE.