American Water Works Company, Inc., the largest regulated water and wastewater utility company in the U.S., announced that it has agreed with Nexus Regulated Utilities, LLC, a subsidiary of Nexus Water Group, Inc., to purchase multiple water and wastewater systems located in eight states for a total of approximately $315 million, subject to adjustment as provided for in the purchase and sale agreement.
Based on current connection counts, the acquisition would add nearly 47,000 customer connections within American Water’s existing footprint in New Jersey, Illinois, Indiana, Kentucky, Maryland, Pennsylvania, Tennessee and Virginia.
“American Water is excited about this announced transaction as it is good for customers and another example of the execution of our core growth strategy,” said John Griffith, president and CEO of American Water. “Through this transaction, we will grow in eight of our existing regulated states and leverage our scale and size to deliver safe, clean, reliable and affordable water and wastewater services to nearly 47,000 new customer connections. Additionally, we believe this expansion will lead to even more growth in those states as communities continue to look for water and wastewater solutions.”
The transaction will require regulatory approval by the state public utility commissions in applicable states, as well as other customary approvals from other governmental entities, and both American Water and Nexus Water Group are committed to working together to ensure that the transition will be seamless for customers after the acquisition and beyond. American Water is also committed to offering employment to the approximately 70 employees of Nexus Water Group affiliates who provide water and wastewater service in these areas.
Nexus Water Group President and CEO Rob MacLean said, “Nexus Water Group is committed to driving sustained growth and value through our long-term strategy. This agreement with American Water will allow Nexus Water Group to focus on a smaller core geography where we are better poised to grow and efficiently serve our customers. The sale also supports continued professional growth for our local employees in these areas.”
The completion of the transaction is also subject to the satisfaction or waiver of various conditions, including the receipt of all required regulatory approvals and other customary closing conditions. The estimated closing will take place by or before August 2026.
