The Heritage Village Water Co. has announced a merger with Clinton-based parent holding company Connecticut Water.

Under the agreement, the acquisition will be executed through a stock-for-stock merger transaction valued at approximately $15.8 million. Heritage Village Water Co.’s common stock holders will receive shares of CTWS common stock in a tax-free exchange. The total enterprise value of the transaction is approximately $20.6 million, including the assumption by Connecticut Water of approximately $4.8 million in debt of Heritage Village Water Co.

The completion of the transaction will require an approval vote by the shareholders of Heritage Village Water Co., approval by the Public Utilities Regulatory Authority and satisfaction of several other conditions. Upon approval, the company will maintain its current name, Heritage Village Water Co., and will become a sister company to Connecticut Water and Maine Water. The merger will not affect the rates or service for any of those water company customers.

Connecticut Water conducts its regulated water operations in Connecticut and Maine through its operating subsidiaries Connecticut Water Co. and Maine Water Co. New England Water Utility Services Inc. is the contract operator of Heritage Village Water Co.’s water and wastewater operations.