8-KRegulation FDOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Regulation FD Disclosure (Dec 18, 2017)

Filed December 18, 2017For Securities:AWK

Summary

American Water Works Company, Inc. (AWK), through its subsidiary Pennsylvania-American Water Company (PAWC), announced the completion of a significant acquisition on December 18, 2017. PAWC has successfully acquired the wastewater assets of The Municipal Authority of the City of McKeesport and the City of McKeesport. This strategic move expands AWK's service footprint into wastewater operations, serving approximately 22,000 customers across McKeesport, Duquesne, Port Vue, and Dravosburg. This acquisition represents a key growth initiative for American Water Works, diversifying its revenue streams beyond its traditional water utility services. Investors should note that the acquired wastewater assets are already operational, and the transaction was completed under the terms of an Asset Purchase Agreement originally dated September 9, 2016. While this filing includes forward-looking statements, the company cautions investors to consider the risks and uncertainties detailed in its other SEC filings.

Key Highlights

  • 1PAWC, a subsidiary of American Water Works Company, Inc., has finalized the acquisition of wastewater assets from the City of McKeesport and its Municipal Authority.
  • 2The acquired assets will serve approximately 22,000 customers in McKeesport and surrounding municipalities including Duquesne, Port Vue, and Dravosburg.
  • 3This acquisition marks American Water Works' entry into providing wastewater services, diversifying its business operations.
  • 4The transaction was completed on December 18, 2017, as per the terms of an Asset Purchase Agreement.
  • 5The acquired assets were part of a system purchase that expands the company's regulated utility base.
  • 6The filing includes a press release and an acquisition fact sheet as exhibits.
  • 7The company notes that this filing is for informational purposes under Regulation FD and does not constitute an amendment to prior filings, with forward-looking statements subject to inherent risks and uncertainties.

Frequently Asked Questions

The main event is the completion of the acquisition of wastewater assets from the City of McKeesport and its Municipal Authority by Pennsylvania-American Water Company (PAWC), a subsidiary of American Water Works Company, Inc. (AWK).

The acquired wastewater assets will serve approximately 22,000 customers located in the City of McKeesport and the surrounding communities of Duquesne, Port Vue Borough, and Dravosburg Borough.

Yes, this acquisition signifies American Water Works' expansion into providing wastewater services, diversifying its portfolio beyond its traditional water utility operations.

Exhibit 99.1 is a press release from PAWC detailing the acquisition, and Exhibit 99.2 is an Acquisition Fact Sheet dated December 18, 2017, intended for use in discussions about the transaction. Both are incorporated by reference.