American Water Works Co. Inc. announced Monday it is selling the majority of its market-based contract services business for $27 million.
The sale, to a unit of Veolia North America, will see 23 of American Water’s 33 operations and maintenance contracts with municipalities and large industrial customers transferred to Veolia, which has offices in Flanders, Middlesex and Trenton.
Voorhees-based American Water said it will retain some contracts, including ones with Camden, North Brunswick and South Orange, due to proximity to existing service areas. Other contracts will be sold to different companies or expire in the near future.
American Water said the deal is expected to close in the third quarter, and it is working to ensure a smooth transition for both customers and employees.
American Water said its remaining market-based businesses will include the Military Services Group, Homeowner Services and Keystone Clearwater Solutions.
Veolia’s parent company is based in France.