Camden-Based American Water, Essential Utilities Merge To Form Biggest U.S. Water Company
A $40 billion stock merger will create the largest water provider in the U.S. The deal combines American Water Works Company with Essential Utilities, serving 4.7 million users.
A $40 billion stock merger will create the largest water provider in the U.S. The deal combines American Water Works Company with Essential Utilities, serving 4.7 million users in 17 states, plus military sites.
"This combination brings together two industry leaders united by our shared mission to provide safe, clean, reliable and affordable water and wastewater services to our customers," said John C. Griffith, American Water President and CEO, according to Business Wire.
Under the terms, Essential investors will get 0.305 American Water shares per Essential share. After closing, current American Water investors will control 69% of the merged firm, with Essential investors holding the rest.
The merged firm will keep the American Water name and its Camden, New Jersey, base. Offices in Bryn Mawr and Pittsburgh stay open. Combined assets total $29.3 billion as of late 2024.
John C. Griffith steps in as CEO, while Essential's Christopher H. Franklin becomes executive vice chair. A board will be made up of 15 combined members from American Water and Essential.
Current rates stay fixed for customers. The firm promises to keep union deals intact. Within a year of closing, profits should rise.
The deal needs approval from investors and regulators, with a target close date of March 2027.
