American Water Works Company, Inc. (NYSE: AWK) has announced its agreement to purchase multiple water and wastewater systems from Nexus Regulated Utilities, LLC, a subsidiary of Nexus Water Group, Inc., for approximately $315 million. This acquisition would add nearly 47,000 customer connections within American Water's existing footprint in Illinois, Indiana, Kentucky, Maryland, New Jersey, Pennsylvania, Tennessee, and Virginia.
The transaction is expected to be completed by or before August 2026, subject to regulatory approval by the state public utility commissions in applicable states and other customary approvals from governmental entities.
This acquisition aligns with American Water's core growth strategy, aiming to leverage its scale and size to deliver safe, clean, reliable, and affordable water and wastewater services to the newly acquired customer connections. American Water plans to offer employment to the approximately 70 employees of Nexus Water Group affiliates who provide water and wastewater service in the areas being acquired.
Furthermore, the agreement is expected to support continued professional growth for local employees in these areas. American Water's President and CEO, John Griffith, expressed excitement about the transaction, emphasizing its benefits for customers and the company's ongoing expansion within its existing regulated states.
American Water, as the largest regulated water and wastewater utility company in the United States, currently serves more than 14 million people with regulated operations in 14 states and on 18 military installations. The company's 6,700 professionals leverage their expertise and the company's national size and scale to achieve favorable outcomes for customers, employees, investors, and other stakeholders. Following these announcements, the company's shares moved 0.51%, and are now trading at a price of $143.29. For more information, read the company's full 8-K submission here.
