New Jersey American Water Completes Acquisition of Hopewell Borough Water System

New Jersey American Water (NYSE:AWK) completed its $6.4 million acquisition of the Hopewell Borough water system, adding about 930 customer connections.

Rhea-AI Summary

New Jersey American Water (NYSE:AWK) completed its $6.4 million acquisition of the Hopewell Borough water system, adding about 930 customer connections. The New Jersey Board of Public Utilities approved municipal consent, enabling the company to directly serve these customers.

The company plans $7 million in infrastructure investments within five years, including replacing lead and galvanized service lines, upgrading meters, hydrants and mains, and shutting down a well with elevated PFAS while supplying water from existing treatment plants.

Positive

• Acquisition adds about 930 new water customer connections
• Purchase price of $6.4 million for Hopewell Borough system
• $7 million committed to infrastructure upgrades over five years
• Regulatory approval from New Jersey Board of Public Utilities obtained
• Tenth acquisition in five years, adding over 25,000 customers

Negative

• Planned $7 million capex exceeds $6.4 million purchase price
• System includes an operating well with elevated PFAS levels requiring shutdown

Argus Jul 1 session

+0.16% close to close Open Argus

Details

News Market Reaction – AWK

On Jul 1, the first trading day after this news, AWK closed 0.16% above the previous close.

Data tracked by StockTitan Argus for the Jul 1 session.

Market Context

This announcement extends AWK’s acquisition strategy with 930 new connections and $7 million of plan...

Analysis

This announcement extends AWK’s acquisition strategy with 930 new connections and $7 million of planned PFAS-focused upgrades. Prior acquisition news has generally seen modestly positive responses; investors may watch recovery of investment through future rate cases.

Key Figures

Purchase price: $6.4 million Infrastructure investment plan: $7 million New customer connections: 930 connections +5 more

Purchase price

$6.4 million

Acquisition of Hopewell Borough water system

Infrastructure investment plan

$7 million

Planned improvements in first five years of ownership

New customer connections

930 connections

Hopewell Borough water system customers added

Prior supply relationship

since 2005

Hopewell Borough has purchased water from New Jersey American Water

Statewide customers served

3 million people

New Jersey American Water service footprint including Hopewell

Recent acquisitions

10 acquisitions

Completed in the last five years in New Jersey

Customers from recent acquisitions

25,000+ customers

New water and/or wastewater customers from ten New Jersey acquisitions

Operating well count

1 well

Existing Hopewell Borough well with elevated PFAS levels to be shut down

Previous Acquisition Reports

5 past events · Latest: Jun 22

Same Type 5 events

1. Jun 22

   Merger approval step

   24h Move

   +1.3%

   Virginia regulators approved a key step in the Essential Utilities merger.

2. Jun 22

   Acquisition milestone

   24h Move

   +0.5%

   Salem City acquisition anniversary highlighted substantial infrastructure and community investments.

3. May 14

   Merger approval step

   24h Move

   -1.3%

   Ohio regulators approved the proposed Essential Utilities all-stock merger structure.

4. Apr 22

   Merger approval step

   24h Move

   +2.9%

   Kentucky regulators cleared the planned merger, advancing multi-state approval progress.

5. Apr 15

   Local system acquisition

   24h Move

   +0.3%

   Kentucky American Water closed the Livingston system acquisition and outlined planned upgrades.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pfas

1 terms

pfas medical

"one operating well that has elevated PFAS levels and provide water"

PFAS are a group of human-made chemicals used in many everyday products, such as non-stick cookware, water-repellent clothing, and food packaging, because they resist heat, water, and grease. They are often called "forever chemicals" because they do not break down easily in the environment or the human body, potentially leading to health concerns. For investors, the presence of PFAS-related risks can impact companies’ reputations, legal liabilities, and future costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Acquisition Adds 930 New Water Customers; $7 Million in Planned Infrastructure Investments

CAMDEN, N.J., June 30, 2026 /PRNewswire/ -- New Jersey American Water today completed its acquisition of the water system of Hopewell Borough for $6.4 million. This former municipally owned system serves approximately 930 water customer connections and has been purchasing water from New Jersey American Water for a portion of the Borough's water supply since 2005. The New Jersey Board of Public Utilities today approved the municipal consent, allowing New Jersey American Water to provide water service to Hopewell Borough customers as of the closing of the transaction.

The agreement to purchase the system was approved by voter referendum in November 2025. This agreement underscores New Jersey American Water's ongoing commitment to delivering safe, clean, reliable and affordable water and wastewater services. By integrating the new system into its operations, the company aims to enhance service reliability, advance infrastructure investments, and improve operational efficiency for Hopewell Borough's customers and this community.

"Following a thorough and thoughtful process with ample community input, we are confident this is the right path forward for Hopewell Borough," said Hopewell Borough Mayor Ryan Kennedy. "By partnering with New Jersey American Water, we are addressing long-term infrastructure needs today while securing dependable, high-quality service and stable rates for our community."

As part of the agreement, New Jersey American Water will invest $7 million in infrastructure improvements to the Hopewell Borough system within the first five years of ownership while keeping rates affordable for the system's customers. Anticipated improvements to the system include identifying and replacing all lead and galvanized steel service lines as well as upgrading aging customer meters, fire hydrants, and water mains. Additionally, New Jersey American Water will shut down the Borough's one operating well that has elevated PFAS levels and provide water to the community through the company's Canal Road and Raritan Millstone Water Treatment Plants which meet current state and federal safe drinking water standards. Further improvement projects will be identified as New Jersey American Water continues its analysis of the system.

"After providing water to Hopewell Borough through an interconnection for over two decades, we're proud to officially welcome the community into our footprint," said Mark McDonough, President of New Jersey American Water. "Our priority is to deliver safe, clean, reliable and affordable service for the 3 million people we serve statewide, including Hopewell. As the community's water provider, we'll start by stabilizing rates, making smart, targeted investments to strengthen the system, and working to address PFAS by first transitioning away from the system's existing well."

Residents will receive additional information in the mail from New Jersey American Water in the coming weeks, and the information is also available now on a new, dedicated webpage on the company's website at newjerseyamwater.com under Customer Service and Billing. Hopewell Borough's residents will now be able to take advantage of the company's customer service benefits, including its online account management portal, MyWater, as well as its H2O Help to Others program for qualifying customers needing help paying their bills.

New Jersey American Water remains focused on delivering industry-leading customer service, environmental stewardship and ongoing infrastructure improvements as it continues to grow and serve more communities across the state. This is New Jersey American Water's tenth acquisition in the last five years, adding more than 25,000 new water and/or wastewater customers.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing^® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water's approximately 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About New Jersey American Water
New Jersey American Water, a subsidiary of American Water, is the largest regulated water utility in the state with approximately 875 dedicated employees working to provide safe, clean, reliable and affordable water and wastewater services to approximately 3 million people.

For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on LinkedIn, Facebook, X, and Instagram.

View original content to download multimedia:https://www.prnewswire.com/news-releases/new-jersey-american-water-completes-acquisition-of-hopewell-borough-water-system-302815014.html

SOURCE American Water

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did New Jersey American Water (NYSE:AWK) announce about the Hopewell Borough water system on June 30, 2026?

New Jersey American Water completed its $6.4 million acquisition of the Hopewell Borough water system. According to New Jersey American Water, the deal adds about 930 customer connections and follows approval from the New Jersey Board of Public Utilities.

How many customers does the Hopewell Borough acquisition add to New Jersey American Water (AWK)?

The Hopewell Borough acquisition adds approximately 930 water customer connections. According to New Jersey American Water, these customers had already been partly supplied via interconnection and will now become full retail customers within the company’s statewide footprint.

How much will New Jersey American Water invest in Hopewell Borough’s water infrastructure after the AWK acquisition?

New Jersey American Water plans to invest $7 million in Hopewell Borough’s system within five years. According to New Jersey American Water, projects include replacing lead and galvanized service lines and upgrading meters, hydrants, and water mains to improve reliability.

How is New Jersey American Water addressing PFAS in the Hopewell Borough water system after the acquisition?

New Jersey American Water will shut down the Borough’s operating well with elevated PFAS levels. According to New Jersey American Water, the community will instead receive water from the Canal Road and Raritan Millstone plants, which meet current state and federal standards.

What does the Hopewell Borough acquisition mean for New Jersey American Water (AWK) growth strategy?

The Hopewell Borough deal is the company’s tenth acquisition in five years. According to New Jersey American Water, these transactions have added more than 25,000 new water and wastewater customers, supporting its strategy of expanding regulated service territories in New Jersey.

Will Hopewell Borough water customers see changes in rates or services under New Jersey American Water (AWK)?

Hopewell Borough customers are expected to have stable and affordable rates under the new ownership. According to New Jersey American Water, customers gain access to its MyWater online portal and H2O Help to Others bill-assistance program, alongside planned infrastructure upgrades.