Water Giant Serving Part Of Solebury Part Of $63 Billion Merger

Two large water and wastewater companies that serve part of the area will be merging, according to a Monday announcement.

American Water Works Company, which is based in New Jersey, and Essential Utilities Inc., which is based in Delaware County and operates the Aqua brand, are set to merge in an all-stock, tax-free transaction that will create a combined public utility with a pro forma market capitalization of approximately $40 billion.

Locally, Aqua serves some customers in Solebury Township.

The company’s boards of directors unanimously approved a merger agreement.

Based on closing stock prices from last week, the deal has a combined enterprise value of about $63 billion.

The combined company will operate as American Water, and the merger is expected to close by end of the first quarter of 2027.

The new, merged company will serve about $19.5 million people across 17 states and 18 military installations.

The new American Water will also have a water and wastewater rate base of approximately $29 billion as of the end of 2024.

American Water President and CEO John Griffith will run the combined company, and Essential Utilities Chairman and CEO Christopher Franklin will take on the role of executive vice chair of the board of directors and be involved in the integration task force.

Griffith said the merger will support continued investment in infrastructure.

“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,” Griffith said in the announcement. “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 companies said the merger would support growth in the coming years while continuing to operate water systems and improve infrastructure.

The announcement comes amid increased scrutiny on for-profit water and wastewater utilities over customer cost increases and their efforts to acquire local systems.

A proposed sale of the Bucks County Water and Sewer Authority system for more than $1 billion failed in 2022 after opposition from local government officials and customers.

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