American Water Works Co. and Essential Utilities have announced an agreement to combine in an all-stock, tax-free merger.
“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 Griffith, American Water president and CEO, in a press release. “By joining forces with Essential, the combined company’s enhanced scale and operational efficiency will support continued investment in our critical infrastructure, enabling us to continue providing superior customer service at affordable rates.”
The combined company would have a water and wastewater rate base of approximately $29.3 billion as of the end of 2024, with approximately 4.7 million water/wastewater connections across 17 states and on 18 military installations. With a larger footprint and customer base as well as increased geographic diversity, the combined company will be positioned to deliver operational leverage and broader customer reach.
Upon closing of the transaction, Griffith will serve as president and CEO of the combined company. Christopher Franklin will serve as executive vice chair of the board of directors of the combined company. David Bowler, American Water executive vice president and CFO, will serve as executive vice president and CFO. Daniel Schuller, Essential executive vice president and CFO, will serve as executive vice president and chief strategy officer.
The combined company’s 15-member board of directors will include the 10 directors serving on American Water’s board of directors prior to the closing of the transaction, and five directors designated by Essential.
The combined company will be based in Camden, New Jersey. Essential’s Bryn Mawr and Pittsburgh offices will each continue to maintain a strong operational presence long term. The combined company will continue to use the name American Water.
The transaction is expected to close by the end of the first quarter of 2027.
