American Water and Essential Utilities approve merger
A leading regulated U.S. water and wastewater public utility emerges as American Water Works Company, Inc. and Essential Utilities, Inc. announce merge. The two companies now hold a combined enterprise value of approximately $63 billion. They will serve over 17 states, 18 military installations and over 4.7 million connections. The combined company will continue to use the name “American Water.”
“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 American Water President and Chief Executive Officer, John C. Griffith. “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. We look forward to bringing together the talented teams of both companies to help solve the many water and wastewater challenges across the country and expand our customer base.”
For both companies, all union contracts will continue to be honored in accordance with their current terms. This merger also includes Peoples Natural Gas, owned by Essential Utilities, Inc. Peoples Natural Gas natural gas services to approximately 705,000 customers in western Pennsylvania and approximately 41,000 in Kentucky. The transaction is expected to close the first quarter of 2027.
“Together, we will have expertise, financial strength and regulatory credibility to continuously improve our infrastructure and meet the evolving needs of our customers,” said Essential Utilities Chairman and Chief Executive Officer, Christopher H. Franklin. “American Water and Essential will continue to enable our communities to thrive.”
