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American Water Pours On an Acquisition

Water utility American Water  (NYSE: AWK  ) announced yesterday that its Illinois subsidiary closed on the acquisition of the city of Grafton's water system in a $1.8 million deal. It adds 400 customers to the utility's existing service.

American Water has been providing Grafton with water services since 2010 under a wholsesale sale-for-resale basis, but with the acquisition Grafton residents will now become direct customers of Illinois American Water and will receive their first bill approximately 30 days after the closing date.

Noting the history the utility has with the city, Illinois American Water President Karla Olson Teasley said, "Through this acquisition, we will expand our existing footprint and help ensure local residents have access to a long-term, reliable water supply for years to come."

The Grafton system will be incorporated into American Water's Alton District, which currently serves residents in Alton, Godfrey, and Elsah. Jersey County Rural Water, Fosterburg Water District, Brighton, and Forest Homes-Maple Park remain wholesale customers.

Headquartered in Voorhees, N.J., American Water is the largest publicly traded U.S. water and wastewater utility company.

Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 31, 2013, at 2:42 PM, klsmith1016 wrote:

    The most important phrase in the entire news release is "publicly traded". Meaning investor owned, meaning all they care about is profits, not their people, water quality or the environment. You should wonder why the majority of their holdings are in areas developing fracking installations. Who do you think gave them the 1.8m for the acquisition?

  • Report this Comment On September 01, 2013, at 11:39 AM, joelkatz wrote:

    klsmith, you're 100% right, and this is exactly why I bought this stock!

  • Report this Comment On September 02, 2013, at 11:19 AM, joelkatz wrote:

    klsmith, you're 100% right, and that's exactly why I bought this stock!

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Rich Duprey

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.


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