8-KOther Events

American Water Works Company, Inc. 8-K Report, Corporate Update (Apr 14, 2022)

Filed April 14, 2022For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced a significant development regarding its subsidiary, Pennsylvania-American Water Company's, proposed acquisition of the City of York's public wastewater collection and treatment system assets. The Pennsylvania Public Utility Commission (PaPUC) has officially approved the acquisition, a crucial step that removes a major hurdle for the transaction. This approval clears the way for the $235 million acquisition to potentially close by mid-June 2022, provided there are no successful challenges within the next 30 days. The acquired system assets are expected to serve over 45,000 customers, representing a substantial expansion of Pennsylvania-American Water's service footprint and a positive step for the Company's inorganic growth strategy. Investors should monitor the closing of this transaction and its impact on future revenue and earnings.

Key Highlights

  • 1Pennsylvania Public Utility Commission (PaPUC) approved Pennsylvania-American Water's acquisition of the City of York's wastewater system assets.
  • 2The approved purchase price is $235 million, plus an adjustment for average daily revenue between the meter reading date and closing.
  • 3The acquired system assets serve more than 45,000 customers, significantly expanding service reach.
  • 4Closing of the transaction is expected by mid-June 2022, contingent on no successful contests of the PaPUC approval within 30 days.
  • 5This approval satisfies a significant remaining condition for the transaction's closing.
  • 6The acquisition represents a key inorganic growth opportunity for American Water Works Company.

Frequently Asked Questions

The main event is the Pennsylvania Public Utility Commission's (PaPUC) approval of Pennsylvania-American Water Company's application to acquire the wastewater collection and treatment system assets from the City of York.

The closing of the transaction is expected to occur by mid-June 2022, assuming no successful contest of the PaPUC's approval within the next 30 days.

The acquired system assets serve, directly and indirectly through bulk contracts, more than 45,000 customers.

The purchase price is $235 million, plus an amount for average daily revenue calculated for the period between the final meter reading and the date of closing.