H2O America more than Doubles Texas Wastewater Connections with Texas Subsidiary’s Acquisition of Cibolo Valley assets from South Central Water Company
H2O America (NASDAQ: HTO) announced that its subsidiary, The Texas Water Company (TWC), will acquire the Cibolo Valley wastewater assets from South Central Water Company (SCW). The acquisition will add over 1,500 new wastewater connections to TWC's existing 1,200 connections, plus 250 connections under contract.
The transaction represents a significant expansion, more than doubling TWC's Texas wastewater connections and increasing H2O America's total connections by over 35%. The acquisition area aligns with TWC's existing water service territory, where they already provide billing services for SCW. The deal will utilize Texas Fair Market Value, with closing expected in Q4 2026.
H2O America (NASDAQ: HTO) ha comunicato che la sua controllata, The Texas Water Company (TWC), acquisirà gli impianti di trattamento delle acque reflue di Cibolo Valley da South Central Water Company (SCW). L’acquisizione aggiungerà alla TWC oltre 1.500 nuove utenze per le acque reflue alle 1.200 già esistenti, oltre a 250 utenze in contratto.
L’operazione rappresenta una notevole espansione: più che raddoppierà le connessioni per acque reflue della TWC in Texas e aumenterà le connessioni complessive di H2O America di oltre il 35%. L’area acquisita è contigua al territorio di servizio acqua della TWC, per il quale la società fornisce già la fatturazione per SCW. Il prezzo seguirà il valore equo di mercato del Texas e il closing è previsto per il quarto trimestre del 2026.
H2O America (NASDAQ: HTO) anunció que su filial, The Texas Water Company (TWC), adquirirá los activos de aguas residuales de Cibolo Valley de South Central Water Company (SCW). La adquisición sumará a TWC más de 1.500 nuevas conexiones de aguas residuales a las 1.200 conexiones existentes, además de 250 conexiones bajo contrato.
La transacción supone una expansión significativa, más que duplicando las conexiones de aguas residuales de TWC en Texas e incrementando las conexiones totales de H2O America en más del 35%. La zona adquirida está alineada con el territorio de servicio de agua de TWC, donde ya presta servicios de facturación para SCW. La operación se valorará según el Precio Justo de Mercado de Texas y el cierre está previsto para el cuarto trimestre de 2026.
H2O America (NASDAQ: HTO)는 자회사인 The Texas Water Company(TWC)가 South Central Water Company(SCW)로부터 Cibolo Valley의 폐수 자산을 인수한다고 발표했습니다. 이번 인수로 TWC는 기존 1,200개 연결에 1,500개 이상의 신규 폐수 연결이 추가되고, 계약상 250개 연결도 포함됩니다.
이번 거래는 TWC의 텍사스 폐수 연결을 크게 확장하는 것으로, 연결 수가 두 배 이상 증가하며 H2O America의 전체 연결 수는 35% 이상 늘어납니다. 인수 지역은 TWC의 기존 상수도 서비스 지역과 일치하며, TWC는 이미 해당 지역에서 SCW의 청구 업무를 담당하고 있습니다. 거래는 텍사스의 공정시장가치(Texas Fair Market Value)를 기준으로 진행되며, 종결은 2026년 4분기로 예정되어 있습니다.
H2O America (NASDAQ: HTO) a annoncé que sa filiale, The Texas Water Company (TWC), va acquérir les actifs d’assainissement de Cibolo Valley auprès de South Central Water Company (SCW). L’acquisition ajoutera à TWC plus de 1 500 nouvelles connexions d’eaux usées aux 1 200 connexions existantes, ainsi que 250 connexions sous contrat.
Cette opération constitue une expansion significative, doublant plus que les connexions d’eaux usées de TWC au Texas et augmentant le nombre total de connexions d’H2O America de plus de 35 %. La zone acquise s’aligne sur le territoire de service en eau déjà desservi par TWC, qui assure par ailleurs la facturation pour SCW. La transaction se fera selon la Fair Market Value du Texas et la clôture est prévue au 4e trimestre 2026.
H2O America (NASDAQ: HTO) gab bekannt, dass seine Tochtergesellschaft The Texas Water Company (TWC) die Abwasseranlagen von Cibolo Valley von der South Central Water Company (SCW) übernehmen wird. Durch die Akquisition werden TWC über 1.500 neue Abwasseranschlüsse zu den bestehenden 1.200 Anschlüssen hinzukommen, zusätzlich 250 vertraglich gebundene Anschlüsse.
Die Transaktion stellt eine erhebliche Erweiterung dar: Sie mehr als verdoppelt die Abwasseranschlüsse der TWC in Texas und erhöht die Gesamtanschlüsse von H2O America um über 35 %. Das Übernahmegebiet liegt im Anschluss an das bisherige Wasserversorgungsgebiet der TWC, in dem das Unternehmen bereits die Abrechnung für SCW übernimmt. Die Bewertung erfolgt zum Texas Fair Market Value, der Abschluss wird für Q4 2026 erwartet.
- More than doubles Texas wastewater connections from 1,200 to over 2,700 (including pending connections)
- 35% increase in connections across H2O America's national platform
- Operational efficiency through existing billing relationship and service area overlap
- Additional 250 wastewater connections under contract and pending construction
- Second strategic acquisition in two months, showing strong growth execution
- Extended closing timeline - transaction not expected to close until Q4 2026
- Requires Public Utilities Commission of Texas approval
- Fair Market Value approach may impact rate base and future customer rates
Insights
H2O America doubles Texas wastewater connections through strategic acquisition, strengthening regional position and creating operational synergies.
H2O America's acquisition of Cibolo Valley wastewater assets represents a significant expansion of its Texas operations, more than doubling its wastewater connections in the state from approximately 1,200 to over 2,700. The deal also includes 250+ additional connections that are under contract and pending construction, indicating near-term growth potential.
This transaction is strategically compelling as it creates perfect geographic synergy - the acquired service area lies entirely within Texas Water Company's existing water service territory. This overlap will drive operational efficiencies and enhance customer experience by providing a single point of service for both water and wastewater utilities.
The company's use of Texas Fair Market Value for the transaction suggests they're utilizing regulatory mechanisms designed to facilitate infrastructure investment. This approach typically allows utilities to include the fair market value of acquired systems in their rate base, potentially improving the economics of the deal.
This marks H2O America's second acquisition announcement in under two months, following the much larger Quadvest acquisition of 140,000+ connections in the Houston area. This acquisition pattern signals an aggressive growth strategy in Texas, targeting both organic expansion and strategic acquisitions to scale operations and consolidate regional market share.
For investors, this continued execution of H2O America's growth-by-acquisition strategy in the fragmented water utility sector demonstrates management's commitment to scaling operations while creating operational synergies through geographic clustering of assets.
Serves more than 1,500 wastewater connections within Texas Water’s existing water service area
Customers will have a single provider for water and wastewater driving convenience and efficiency
Transaction to utilize Texas Fair Market Value
CANYON LAKE, Texas, Aug. 27, 2025 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) today announced that its regulated Texas water and wastewater utility, The Texas Water Company, Inc. (“TWC”) and South Central Water Company (“SCW”), a privately owned wastewater company in Bulverde, Texas, have entered into an agreement pursuant to which TWC will acquire a portion of the assets of SCW, specifically the Cibolo Valley wastewater treatment plant and associated collection systems. The transaction will expand TWC’s service footprint in the Texas Hill Country by adding over 1,500 new wastewater connections to its existing base of approximately 1,200 connections. Additionally, the Cibolo Valley wastewater system has more than 250 wastewater connections under contract and pending construction.
“This is a substantial expansion of owned wastewater connections in Texas and across our national platform – more than doubling connections within Texas and an increase of more than
Aundrea Williams, president of TWC, stated, “This is a natural fit within our existing footprint. The entire SCW service area lies within our water service area, and we have been providing billing services to SCW —so we expect this transition to be seamless for the customers of SCW and TWC. The combination of the Cibolo Valley assets with TWC increases efficiency and provides greater convenience for customers through our robust customer experience solutions.”
TWC plans to use Texas Fair Market Value for this transaction and expects the application to be filed with the Public Utilities Commission of Texas in the third quarter of 2025 with a closing expected in the fourth quarter of 2026.
This is the second acquisition announced by H2O America and TWC in less than two months. On July 8, 2025, TWC announced the acquisition of more than 140,000 water and wastewater connections whether active or under contract and pending development in the greater Houston area through an asset purchase transaction with Quadvest. Details on that transaction are available at H2O-America.com.
About Texas Water Company
The Texas Water Company has successfully provided safe and reliable water and wastewater service to its customers in Texas since 2006 and safeguards public health, promotes environmental stewardship, and delivers sustainable solutions in seven counties. We provide a broad range of solutions to the communities we serve, from management of water and wastewater treatment infrastructure to the design and implementation of water reuse technology, water supply development and more.
About South Central Water Company
South Central Water Company (dba South Central Wastewater) is a family owned and operated wastewater utility company in Texas. In its 50 years of doing business, South Central has built over 800 wastewater treatment plants all across the state. As Texas continues to see an increase in population, South Central has focused its efforts on providing developers wastewater solutions to land parcels outside of current service areas. South Central has a robust pipeline with wastewater discharge permits that have the capacity to serve over 70,000+ customers and over a dozen new projects that will be breaking ground in the next five years.
About H2O America
H2O America (NASDAQ: HTO) is a national investor-owned network of local water and wastewater utilities united by one purpose: delivering clean, high-quality water to the communities we call home.
For H2O America, providing water is more than a responsibility—it’s a privilege. Every connection we serve helps sustain what matters most: public health, vibrant neighborhoods, and a reliable future.
Across approximately 407,000 water and wastewater service connections, we invest in critical infrastructure to strengthen water supply for generations to come. We stay actively engaged in our local communities while focusing on operational excellence and delivering sustainable, long-term value to our investors.
Water is local—and so are our roots. Through our four regional water utilities—Connecticut Water, Maine Water, San Jose Water, and Texas Water—we proudly serve more than 1.6 million people across the country. Together, we protect what’s precious.
For more information, please visit our website at www.H2O-America.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws relating to future events and future results of H2O America and its subsidiaries that are based on current expectations, estimates, forecasts, and projections about H2O America and its subsidiaries and the industries in which H2O America and its subsidiaries operate and the beliefs and assumptions of the management of H2O America. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” “approximately,” “strategy,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.
The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the risks associated with the proposed transactions with Quadvest, including, the risk of the proposed transactions not closing on the anticipated timeline, or at all, the ability to obtain required regulatory approvals, and the ability to successfully integrate Quadvest’s operations and realize the projected financial and other benefits of the proposed transactions; (2) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (3) changes in demand for water and other services; (4) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (5) the effect of the impact of climate change; (6) unexpected costs, charges or expenses; (7) our ability to successfully evaluate investments in new business and growth initiatives; (8) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (9) the risk of work stoppages, strikes and other labor-related actions; (10) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (11) changes in general economic, political, legislative, business and financial market conditions; and (12) the ability to obtain financing on favorable terms, or at all (including the financing for the proposed transactions with Quadvest in a timely manner), which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions. The risks, uncertainties and other factors may cause the actual results, performance or achievements of H2O America to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Results for a quarter are not indicative of results for a full year due to seasonality and other factors. In addition, actual results, performance or achievements are subject to other risks and uncertainties that relate more broadly to our overall business, including those more fully described in our filings with the SEC, including our most recent reports on Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements are not guarantees of future performance, and speak only as of the date made, and H2O America undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Media contact
MediaRelations@H2O-America.com
Investor contact
Daniel J. Meaney
Director of Investor Relations
860.664.6016
InvestorRelations@H2O-America.com
FAQ
How many wastewater connections will H2O America (NASDAQ: HTO) gain from the Cibolo Valley acquisition?
When is the H2O America Cibolo Valley acquisition expected to close?
What is the strategic significance of HTO's Cibolo Valley acquisition?
How will the Cibolo Valley acquisition affect current SCW customers?
What other acquisitions has H2O America recently announced?
