Utilities Acquisitions in 2024

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), completed the acquisition of the Farmington Township water and wastewater systems in Clarion County, Pennsylvania and signed (and later completed) an agreement to acquire the Corner Water Supply and Service Corporation water system. Combined consideration was reported at roughly $5.8 million (Corner Water was later reported sold for $250,000), and Pennsylvania American Water plans multi‑million dollar investments to upgrade and regionalize the systems to improve reliability and meet regulatory standards.

Illinois American Water completed its $8.4 million acquisition of the Metro East Sanitary District (MESD) wastewater system, adding roughly 5,600 customers to its Metro East footprint near St. Louis. The purchase (approved by the Illinois Commerce Commission) includes the Eagle Park and Lansdowne wastewater systems and positions Illinois American Water to invest in infrastructure and operational improvements across the MESD assets.

New Jersey American Water, a subsidiary of American Water, completed the $6.5 million purchase of the Borough of Manville’s wastewater collection system, adding approximately 4,300 wastewater customers. The sale—approved by municipal referendum and state consent—transfers system ownership to the utility, which committed to invest a minimum of $10 million in wastewater improvements over the next ten years.

Pennsylvania American Water, a subsidiary of American Water, completed the $230 million purchase of the Butler Area Sewer Authority (BASA) wastewater system in Butler County, Pennsylvania. The acquisition adds more than 15,000 customer connections and Pennsylvania American Water plans to invest over $75 million in system upgrades while BASA will use proceeds to eliminate approximately $49 million in debt.

Enbridge Inc. has completed the acquisition of Public Service Company of North Carolina, Incorporated (PSNC) from Dominion Energy. PSNC — a regulated single-state natural gas utility serving over 600,000 customers with more than 13,000 miles of pipeline — will operate as Enbridge Gas North Carolina and join Enbridge's Gas Distribution and Storage business unit.

LP First Capital has acquired REI Utility Services, a Texas-based provider of joint-use management and field engineering services for electric cooperatives. The transaction was supported by unitranche debt and an equity co-investment from Graycliff Partners and Brookside Capital Partners; REI's management team will remain in place as the firm pursues geographic and service expansion.

Indiana American Water (a subsidiary of American Water) received regulatory approval and completed the $45 million acquisition of Silver Creek Water Corporation, bringing roughly 8,000 customers into INAW's Southern Indiana operations. The member-owned utility's board and members approved the sale, and Silver Creek employees will join Indiana American Water following closing on November 6, 2024.

Bernhard Capital Partners has agreed to acquire New Mexico Gas Company (NMGC) from Emera Inc. for an aggregate transaction value of $1.252 billion USD, including assumption of approximately $500 million of debt. The deal, subject to New Mexico Public Regulation Commission approval and HSR clearance, is expected to close in late 2025 and supports Emera's portfolio optimization while giving BCP a regulated utility platform investment in New Mexico.

Jones Capital completed a recapitalization of Dark Horse Electric, a Sunbright, Tennessee-based provider of vegetation management and power line construction services for utilities and public-sector customers. The transaction will provide growth capital and operational support to expand Dark Horse's service capabilities and geographic reach while the company continues to operate from its Sunbright headquarters.

Urbint has acquired WRM Software, a provider of utility incident management and storm response applications, making WRM a wholly owned subsidiary. The acquisition extends Urbint’s AI-driven risk platform to include storm response and incident management capabilities for utilities and critical infrastructure operators.

AM Conservation, the products division of Franklin Energy, has agreed to purchase the assets of Energy Federation, Inc. (EFI) to combine product lines and marketplace capabilities and become a more comprehensive provider of products and marketplace solutions to the utility industry. Because EFI is a nonprofit, the closing is conditioned on final approval from the Massachusetts Attorney General and the Massachusetts Supreme Judicial Court.

GridTek Utility Services, a U.S.-based provider of repair, maintenance, installation and upgrade services for electric transmission and distribution infrastructure, has been sold by private equity firm First Reserve. Financial terms and the buyer were not disclosed; advisors on the transaction included Harris Williams (financial) and Simpson Thacher & Bartlett LLP (legal).

Presque Isle Electric & Gas Co-op (PIE&G) has purchased all outstanding stock of Aurora Gas Co., bringing Aurora’s roughly 2,800 natural gas accounts into PIE&G’s membership. The acquisition expands PIE&G’s natural gas service footprint by about 28%, increases its membership base, and preserves the investment of the selling Tierney family in the Onaway, Michigan community.

ČEZ Group has agreed to buy a 55.21% stake in Czech Grid Holdings (owner of GasNet and GasNet Služby) from Macquarie Asset Management for an enterprise value of approximately €4 billion. The transaction covers the Czech Republic's largest gas distribution network — roughly 65,000 km of pipelines serving 2.3 million connection points — and is expected to reach financial close in Q3 2024.

Itron, Inc. has acquired Elpis Squared, a Newport Beach–based provider of software and services for utility grid operations, effective March 5, 2024. The deal expands Itron's Grid Edge Intelligence portfolio by adding Elpis Squared's RE|Grid Suite and expertise in distribution grid planning, operations and engineering to accelerate grid modeling, analytics and operational use of high-resolution grid edge data.

Levine Leichtman Capital Partners (LLCP) has acquired USA Water from Warren Equity Partners, with management reinvesting and continuing to lead the company. Headquartered in Rosenberg, Texas, USA Water provides operations and maintenance (O&M) services for water and wastewater systems across the Southeast United States; LLCP plans to broaden its service capabilities and geographic footprint through organic growth and strategic acquisitions.