The Carlyle Group and Park Water Agree for Carlyle to Acquire Park Water

Downey, CA and Washington, DC – Park Water Company and global alternative asset manager The Carlyle Group today announced that they have agreed that Carlyle will acquire Park Water Company, a California-based investor-owned water utility company, from Henry H. Wheeler, Jr. and the Wheeler Family. The definitive agreement, which was signed today, is subject to regulatory approval. Financial terms were not disclosed.

Park Water is located in Downey, California and provides water to southeast Los Angeles County. Park Water also owns two other water utilities – Apple Valley Ranchos Water Company in California and Mountain Water Company in Montana. Park Water and its subsidiaries provide water distribution to approximately 225,000 people through nearly 71,000 service connections. In Montana, the Mountain Water Company is located in Missoula, and is the largest investor-owned water company in the state serving nearly 50,000 people. Apple Valley Ranchos Water Company serves 65,000 people in Apple Valley and Victorville, California.

Henry H. Wheeler, Jr., the principal owner of Park Water, said, “I am pleased to enter into this agreement with Carlyle. Since 1937 when the company was founded by my family, we have built a strong reputation for safety and service, and a business that cares about its customers and employees. I am confident Carlyle is committed to continuing that tradition.”

Robert Dove, Carlyle Managing Director and Co-Head of Carlyle’s global infrastructure practice, said, “We are pleased to have reached an agreement with the Wheeler family to acquire Park Water, a well-managed company with dedicated employees. This investment is a strategic addition to our fund, and Carlyle is keen to support Park Water and its subsidiaries by providing capital to reinvest in the company’s operations to ensure the highest quality water standards and customer service.”

Mr. Dove added, “We are particularly pleased that Mr. Wheeler has agreed to continue his involvement with Park Water by being a member of the board of directors and serving as a consultant to the company.”

Carlyle’s investment will be made by Carlyle Infrastructure Partners, a $1.14 billion fund that invests primarily in transportation and water infrastructure projects in the U.S. and Canada ranging from $100 million to more than $1 billion in enterprise value.

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About Park Water Company

Park Water Company is a privately held public water utility company that covers nearly 11 square miles in southeast Los Angeles County. In addition, Park also has two subsidiaries Apple Valley Ranchos Water Company in Apple Valley, California and Mountain Water Company in Missoula, Montana. Together the three entities provide water to over 225,000 people.

About The Carlyle Group

The Carlyle Group is a global alternative asset manager with $97.7 billion of assets under management committed to 76 funds as of September 30, 2010. Carlyle invests across three asset classes - private equity, real estate and credit alternatives - in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $64.7 billion of equity in 1015 transactions. The Carlyle Group employs more than 900 people in 19 countries. As of June 30, 2009, in the aggregate, Carlyle portfolio companies have more than $84 billion in revenue and employ more than 398,000 people around the world. Web: www.carlyle.com;  Video: www.youtube.com/OneCarlyle

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