Virginia American Water Completes Purchase of Colchester Utilities Wastewater System, Part of Nexus Water Group Systems

American Water (NYSE: AWK), through subsidiary Virginia American Water, completed its purchase of the Colchester Utilities wastewater system from Nexus Regulated Utilities, part of Nexus Water Group.

Rhea-AI Summary

American Water (NYSE: AWK), through subsidiary Virginia American Water, completed its purchase of the Colchester Utilities wastewater system from Nexus Regulated Utilities, part of Nexus Water Group.

The deal adds one large customer, about 170 indirect wastewater connections, and two employees, and follows approvals for acquiring Nexus systems in eight states, with closing on June 1, 2026.

Positive

• Acquisition adds one large customer and about 170 indirect wastewater connections
• Two experienced Colchester Utilities employees join Virginia American Water operations
• Closing advances American Water’s core growth strategy across eight U.S. states
• Regulatory and governmental approvals obtained by May 21, 2026
• Purchase of Nexus Water Group systems in eight states completed June 1, 2026

Negative

• None.

Argus Jun 2 session

+2.11% close to close Open Argus

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.

Market Context

This announcement highlights continued execution of American Water’s core growth strategy, with Virg...

Analysis

This announcement highlights continued execution of American Water’s core growth strategy, with Virginia American Water completing the Colchester Utilities wastewater acquisition and adding approximately 170 indirect connections plus local operating staff. It follows recent water quality, infrastructure, and community investment updates that produced modest price reactions. With the stock trading below its $133.52 200-day MA and well under its 52-week high, investors may focus on how effectively these incremental acquisitions scale, integrate operationally, and support long-term regulated returns.

Key Figures

Customer connections added: approximately 170 connections States in Nexus deal: 8 states Iowa customers served: over 225,000 people +5 more

Customer connections added

approximately 170 connections

Colchester Utilities wastewater system acquisition

States in Nexus deal

8 states

Planned acquisition of Nexus Water Group systems

Iowa customers served

over 225,000 people

Iowa Water Quality Reports 2025

Illinois customers served

about 1.3 million people

Illinois Water Quality Reports 2025

Lead line program spend

$32 million

Planned for 2026 lead service line replacement

NJ grants 2026

$50,000

Volunteer firefighter and EMS grants

CA infrastructure 2026

$277 million

Planned water and wastewater investments

Senior notes issued

$500 million

4.625% Senior Notes due 2029 (AWCC)

Historical Context

5 past events · Latest: May 28

5 events

1. May 28

   Water quality reports

   24h Move

   -1.2%

   Iowa Water Quality Reports show standards met for over 225,000 people.

2. May 26

   Training facility opening

   24h Move

   -1.1%

   New West Virginia training facility to support workforce and system reliability.

3. May 21

   Illinois water reports

   24h Move

   +1.2%

   Illinois Water Quality Reports and $32M planned for lead line replacement.

4. May 21

   Community grants

   24h Move

   +1.2%

   NJ American Water awards about $50,000 in grants to 21 departments.

5. May 20

   Infrastructure investment

   24h Move

   -0.8%

   California unit outlines approximately $277M in 2026 infrastructure projects.

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.

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ALEXANDRIA, Va., June 1, 2026 /PRNewswire/ -- Virginia American Water, a subsidiary of American Water Works Company, Inc. (NYSE: AWK), the largest regulated water and wastewater utility company in the U.S., announced today the completion of its acquisition of Colchester Utilities wastewater system from Nexus Regulated Utilities, LLC, a subsidiary of Nexus Water Group, Inc. ("Nexus Water Group").  

The acquisition adds one large customer and approximately 170 indirect wastewater customer connections to Virginia American Water's footprint. Additionally, Virginia American Water is welcoming to its operations two employees from Colchester Utilities who proudly provide wastewater service to these customers. 

"On behalf of our entire team, we are delighted to welcome our new customers and new employees to the Virginia American Water family," said Laura Runkle, President of Virginia American Water. "We look forward to serving them 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 U.S., highlighting benefits for customers and demonstrating the company's successful implementation of its core growth strategy as it creates value for customers, employees, and shareholders. 

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.   

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 Virginia American Water
Virginia American Water, a subsidiary of American Water, is the largest regulated water company in the state, providing safe, clean, reliable and affordable water and wastewater services to approximately 384,000 people. For more information, visit www.virginiaamwater.com and join Virginia American Water on LinkedIn, Facebook, and X. 

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. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-american-water-completes-purchase-of-colchester-utilities-wastewater-system-part-of-nexus-water-group-systems-302786071.html

SOURCE American Water

FAQ

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

What did American Water (NYSE: AWK) announce about the Colchester Utilities wastewater system?

American Water announced that Virginia American Water completed the acquisition of the Colchester Utilities wastewater system. According to American Water, the deal adds one large customer, about 170 indirect wastewater connections, and two employees to its Virginia operations, expanding its regulated wastewater footprint.

How many customers does the Colchester Utilities acquisition add to Virginia American Water?

The Colchester Utilities acquisition adds one large customer and about 170 indirect wastewater customer connections. According to Virginia American Water, these additional connections will be integrated into its existing operations, supported by two joining employees who already provide wastewater services to these customers in the local community.

When did American Water (AWK) complete the purchase of Nexus Water Group systems?

American Water completed the purchase of Nexus Water Group systems on June 1, 2026. According to American Water, all required approvals from applicable state regulatory commissions and governmental entities were obtained as of May 21, 2026, enabling closing of systems in eight states.

How does the Colchester Utilities deal support American Water’s growth strategy?

The Colchester Utilities deal is presented as part of American Water’s core growth strategy. According to American Water, acquiring Nexus Water Group systems in eight states creates value for customers, employees, and shareholders by expanding regulated wastewater services and leveraging local operational expertise.

What regulatory approvals were needed for American Water’s Nexus Water Group acquisition?

The Nexus Water Group acquisition required approvals from applicable state regulatory commissions and governmental entities. According to American Water, these approvals were obtained by May 21, 2026, clearing the way for the June 1, 2026 completion of the multi-state wastewater and water systems purchase.

What operational changes come with the Colchester Utilities acquisition for Virginia American Water?

The acquisition brings two Colchester Utilities employees and new wastewater customers into Virginia American Water’s operations. According to Virginia American Water, these employees’ local expertise is expected to help ensure a smooth transition while maintaining safe, clean, reliable, and affordable wastewater service for the newly added customers.