California water: purchase price of approximately $218 million

California water: purchase price of approximately $218 million

California Water Service Group to Acquire Nexus Water Assets for $218 Million

California Water Service Group (NYSE: CWT) has agreed to acquire water and wastewater systems operated by Nexus Water Group in Nevada and Oregon for approximately $218 million, subject to closing adjustments. The transaction, expected to close by year-end 2026 pending regulatory approvals, will add 36,000 equivalent residential connections and a combined rate base of $109 million as of December 31, 2025.

The acquisition, funded through working capital and existing debt and equity facilities, is projected to be accretive to CWT's operations within one year of completion. The systems will expand CWT's service footprint across seven western U.S. states, serving approximately 2 million people through 584,000 service connections.

Chairman and CEO Martin A. Kropelnicki emphasized the strategic significance of the deal, stating it aligns with the company's centennial milestone and growth objectives. Nexus Water Group's President and CEO Rob MacLean noted the divestment supports Nexus's long-term strategy to "right-size" its operations while ensuring a seamless transition for employees and customers.

The transaction received unanimous board approval from both companies, with Baker McKenzie serving as CWT's legal counsel. Regulatory filings highlight customary risks, including approval delays or integration challenges, which could affect the timeline or financial outcomes.

CWT, the largest regulated water utility in the western U.S., operates through subsidiaries serving California, Hawaii, New Mexico, Washington, and Texas. Its stock trades on the New York Stock Exchange under the symbol "CWT".

This acquisition underscores CWT's strategy to expand its regional platform while enhancing infrastructure and customer service capabilities in key markets.

(https://www.stocktitan.net/news/CWT/california-water-service-group-announces-agreement-to-purchase-nexus-vf6ed4yhpuf2.html): California Water Service Group, February 25, 2026
(https://www.globenewswire.com/news-release/2026/02/25/3245046/0/en/California-Water-Service-Group-Announces-Agreement-to-Purchase-Nexus-Water-Group-s-Nevada-and-Oregon-Water-and-Wastewater-Systems-Solidifying-Its-Position-as-the-Largest-Regulated-.html): GlobeNewswire, February 25, 2026