American Water to acquire Nexus Water Group for $315 million.

American Water Works Company agreed to purchase Nexus Water Group Systems in eight states for $315 million, adding nearly 47,000 customer connections to its existing footprint. The acquisition is subject to adjustment according to the purchase and sale agreement. American Water is the largest regulated water and wastewater utility company in the US.

American Water Works Company, Inc. (AWWC) has announced the acquisition of Nexus Water Group Systems, a leading provider of water and wastewater services in eight states. The deal, valued at $315 million, will add approximately 47,000 customer connections to AWWC's existing footprint. The acquisition is subject to adjustment according to the purchase and sale agreement.

AWWC, the largest regulated water and wastewater utility company in the US, aims to expand its reach and enhance its service offerings through this strategic move. Nexus Water Group Systems will become a subsidiary of AWWC, allowing the company to leverage its extensive infrastructure and operational expertise to serve more customers.

The acquisition is expected to strengthen AWWC's market position, particularly in the regions where Nexus operates. By integrating Nexus's customer base into its existing network, AWWC anticipates improved operational efficiency and cost savings.

The deal highlights AWWC's commitment to growth and expansion, driven by its mission to enhance the quality of life for customers and communities. The company's strong financial performance and robust balance sheet position it well to execute this acquisition and integrate Nexus's operations seamlessly.

The transaction is subject to regulatory approvals and is expected to close in the second quarter of 2025. AWWC's management expressed confidence in the deal, noting that it aligns with the company's long-term strategy to deliver sustainable and reliable water services.

References:
[1] https://www.nasdaq.com/articles/california-water-service-group-releases-2024-sustainability-report-highlighting-emissions