Utilities Acquisitions in 2023

Macquarie Asset Management (via Macquarie European Infrastructure Fund 7) has acquired a 50% stake in Last Mile Infrastructure Group from Infracapital, with Infracapital retaining the remaining 50%. Last Mile, one of the UK’s largest independent network owners that designs, builds, owns and operates last-mile electricity, gas, water and wastewater networks, will benefit from the partnership to support growth and energy-transition opportunities across the UK. The transaction remains subject to regulatory approvals.

Indiana American Water purchased the Sunset Village water system (serving the Bushman's Lake community) from owner Tina Beckort, adding about 100 water customers and roughly 270 residents to its service area. The $150,000 transaction was approved by the Indiana Utility Regulatory Commission on August 2, 2023 and closed October 31, 2023, expanding Indiana American Water's presence in southeast Indiana and providing the small system access to the company's operations, capital and customer service resources.

West Virginia American Water, a subsidiary of American Water, completed the acquisition of Jefferson Utilities (including assets of Valley Water and Sewer Services, Shenandoah Junction Public Sewer and East Jefferson Sewer Services) for $27 million. The combined systems serve 3,978 customer connections across Jefferson, Berkeley and Morgan counties; the buyer plans infrastructure updates and will transition customers to West Virginia American Water service and PSC-established rates. The seller/owner, Lee Snyder, is retiring after building the systems over 25 years.

NW Natural Water Company, a wholly-owned subsidiary of Northwest Natural Holding Company, completed the acquisition of Rose Valley Water Company, a family-owned water utility serving approximately 2,400 connections in Peoria, Arizona. The transaction closed on October 2, 2023, giving NW Natural Water an initial footprint in Maricopa County and positioning the company for further growth in Arizona.

Pennsylvania American Water has acquired Appalachian Utilities, Inc., a small investor-owned water system serving ~1,450 customer connections in Clinton County, Pennsylvania. The regulated utility plans to invest more than $6.2–6.5 million to upgrade aging infrastructure and will adopt Appalachian's current rates pending regulatory approvals.

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), has acquired Audubon Water Company, a private investor-owned water system serving approximately 2,900 customer connections in Lower Providence Township, Montgomery County, Pennsylvania. The transaction was valued at about $8 million and received PUC approval (completed Jan 23, 2025); Pennsylvania American Water plans to invest roughly $21.5 million over the next five years to upgrade and interconnect the system.

Essential Utilities, through its Aqua Pennsylvania subsidiary, acquired the Municipal Authority of the Borough of Shenandoah (MABS) water system for $12 million. The transaction transfers service for roughly 3,000 customers in Shenandoah, Pennsylvania to Aqua Pennsylvania, which plans more than $23 million in infrastructure investments over the next 10 years to improve reliability and water quality.

Illinois American Water, a subsidiary of American Water, purchased the Village of Tolono’s water and wastewater systems for $9.416 million, adding roughly 1,295 water and 1,254 wastewater customers to its eastern Illinois service area. The company plans to invest about $17 million over the first five years to upgrade meters, mains, hydrants, lift stations and to design and build a new wastewater treatment plant to support reliability and growth.

Xylem Inc. completed the acquisition of Evoqua Water Technologies in an all-stock transaction valued at approximately $7.5 billion, creating the world’s largest pure-play water technology company. The combined company has pro forma revenue of roughly $7.3 billion and more than 22,000 employees globally; the transaction is expected to deliver significant cost synergies and expands Xylem's advanced treatment and services capabilities across municipal and industrial end markets.

Gainline Capital Partners has purchased a majority interest in Flagship Power, a Texas-based retail electricity provider founded by Utility Rescue Holdings. Utility Rescue remains a significant shareholder and Flagship’s management team will stay in place as Gainline supports growth and the launch of new services such as "Flagship PLUS."

Indiana American Water, a subsidiary of American Water, acquired the Claypool water system from the Town of Claypool for $700,000. The transaction, approved by the Indiana Utility Regulatory Commission on February 22, 2023 and closed March 28, 2023, adds about 150 water customers (serving ~400 residents) and gives the system access to Indiana American Water’s operational and capital resources.

Washington Water Service, a subsidiary of California Water Service Group, has closed the acquisition of Bethel Greenacres Water Association's water system assets following WUTC approval. The transaction transfers a system serving ~200 residential connections in Graham, Washington (adjacent to Washington Water's East Pierce system); Washington Water has been operating the system under an O&M agreement since September 2022 and plans ongoing investments to support reliable water service.