New Jersey American Water Completes Purchase of Montague Sewer & Water Company's Utility Systems, Part of Nexus Water Group Systems
New Jersey American Water (NYSE: AWK), a subsidiary of American Water Works, completed the acquisition of Montague Sewer & Water Company's water and wastewater systems in New Jersey from Nexus Regulated Utilities, part of Nexus Water Group.
Rhea-AI Summary
New Jersey American Water (NYSE: AWK), a subsidiary of American Water Works, completed the acquisition of Montague Sewer & Water Company's water and wastewater systems in New Jersey from Nexus Regulated Utilities, part of Nexus Water Group. The deal adds about 810 water and 270 wastewater customer connections and two local employees. Regulatory and governmental approvals were obtained by May 21, 2026, and the purchase closed on June 1, 2026. New customers will receive transition details by mail and can access online tools, flexible payment options, and assistance programs.
Positive
- Acquisition adds about 1,080 total customer connections in New Jersey
- Regulatory and governmental approvals secured by May 21, 2026
- Transaction for Nexus Water Group systems aligns with stated core growth strategy
- Two experienced local employees integrated into New Jersey American Water operations
- New customers gain access to MyWater portal and flexible payment options
Negative
- None.
Details
News Market Reaction – AWK
On Jun 2, the first trading day after this news, AWK closed 2.11% above the previous close.
Data tracked by StockTitan Argus for the Jun 2 session.
Key Figures
- Water connections acquired
- 810 connections
- Montague water system customers added in New Jersey acquisition
- Wastewater connections acquired
- 270 connections
- Montague wastewater system customers added in New Jersey acquisition
- States in Nexus deal
- 8 states
- Nexus Water Group systems agreement announced May 19, 2025
- Senior notes offering
- $500,000,000
- 4.625% Senior Notes due 2029 offered by American Water Capital Corp.
- Net proceeds (8-K)
- $498.0 million
- Net proceeds from 4.625% Senior Notes due 2029 after underwriting discounts
- Expected net proceeds
- $496.9 million
- Expected net proceeds described in 424B2 prospectus supplement
- Beneficial ownership
- 11,313,847 shares
- Wellington entities’ holdings representing 5.79% of common stock on 03/31/2026
- Ownership stake
- 5.79%
- Wellington-affiliated entities’ reported stake in Schedule 13G
Historical Context
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Iowa water quality reports showing compliance with state and federal standards.
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Opening of a new West Virginia training facility supporting system reliability.
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Illinois water quality reports and lead service line replacement updates.
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New Jersey firefighter and EMS grants supporting local emergency services.
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Plan for about $277 million of 2026 infrastructure investments in California.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The acquisition adds approximately 810 water and 270 wastewater customer connections to New Jersey American Water's footprint. Additionally, New Jersey American Water is welcoming to its operations two employees from Montague Sewer & Water who proudly provide water and wastewater service to these customers.
"On behalf of our entire team, we are delighted to welcome our new customers and new employees to the New Jersey American Water family," said Mark McDonough, President of New Jersey American Water. "We look forward to serving our new customers and helping to ensure a smooth transition by relying on the expertise of local employees who know these operations best. Our team is committed to providing safe, clean, reliable, and affordable water and wastewater services to the communities we serve."
On May 19, 2025, American Water announced its agreement to acquire Nexus Water Group systems in eight states across the
Approvals by applicable state regulatory commissions and governmental entities were obtained as of May 21, 2026, and American Water completed the purchase on June 1, 2026.
New Jersey American Water is committed to ensuring a seamless transition for its new customers, who will receive additional information in the mail in the coming weeks. The information is also available now on a new, dedicated webpage on the company's website under Customer Service and Billing.
New customers will be able to take advantage of New Jersey American Water's robust customer service benefits, including its online account management portal, MyWater, as well as flexible payment options and customer assistance programs for qualifying customers needing help paying their bills.
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
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.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to, among other things, anticipated capital investments and the ability to achieve certain benefits, synergies and goals relating to the acquired operations. These statements are based on the current expectations of management of American Water. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements, including with respect to (1) the occurrence, in whole or in part, of the plans, benefits and synergies expected or predicted to occur as a result of the acquisition; (2) unexpected costs, liabilities or delays associated with the integration of the acquired operations; (3) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect American Water; and (4) other economic, business and other factors. Forward-looking statements are not guarantees or assurances of future performance or results, and American Water does not undertake any duty to update any forward-looking statement. The foregoing factors should not be considered to be exclusive.
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SOURCE American Water
FAQ
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