American Water's Unit Acquires Village Of Fisher For $6.8M
Zacks Investment Research | Mar 28, 2018 10:33PM ET
American Water Works Company Inc. (NYSE:AWK) announced that its subsidiary — Illinois American Water — has completed the acquisition of the Village of Fisher’s water and wastewater systems for $6.8 million. The acquisition has resulted in the addition of 850 new water and wastewater customers to the company’s existing customer base.
Illinois American Water has plans to invest $2.9 million in the next five years to improve the existing water and wastewater infrastructure of the Village of Fisher. This will allow the company to provide high-quality services to its customers in the region.
Acquisition Boosts Growth
The old water and wastewater infrastructure needs ample investments, easier for bigger players to make. Consolidation would therefore drive the necessary infrastructure overhauls for the industry at large.
American Water Works Company is very active on the acquisition front and has been increasing its existing operations in the United States through acquisitions of water and wastewater service providers. During 2016, the company added 42,000 customers to its existing customer base through acquisitions. American Water Works added 39,514 customers in 2017 through acquisitions. The company is already in discussion to acquire another 23,000 customers through acquisitions
Recently, Connecticut Water Service (NASDAQ:CTWS) announced that it has entered into a definite agreement to merge with SJW Group (NYSE:SJW) in an all-stock transaction. The combined company will become one of the largest water and wastewater service providers in the United States, and serve more than 1.5 million customers in multiple states. (Read more: Zacks Investment Research
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