California Water Service Group Announces Agreement to Purchase Nexus Water Group's Nevada and Oregon Water and Wastewater Systems, Solidifying Its Position as the Largest Regulated Water Utility in the Western U.S. and Creating a Platform for Additional G
MWN-AI** Summary
California Water Service Group (CWT) has made a significant move to solidify its position as the largest regulated water utility in the Western United States by announcing an agreement to acquire Nexus Water Group's water and wastewater systems in Nevada and Oregon. The acquisition, valued at approximately $218 million and expected to be finalized by the end of 2026 pending regulatory approvals, adds approximately 36,000 equivalent residential connections and boosts CWT's rate base by $109 million.
This strategic investment marks a notable milestone as CWT prepares to celebrate its centennial year. The company, which currently serves around two million people across California, Hawaii, New Mexico, Washington, and Texas, underscores this step as an opportunity to further enhance its service offerings while creating a scalable regional platform with embedded growth potential.
Martin A. Kropelnicki, CWT’s Chairman and CEO, expressed excitement over the acquisition, emphasizing the company’s evolution from servicing small communities to a significant role in the water utility sector. The move is anticipated to foster new capital investments that will benefit customers in both states, ensuring high standards of service and operational efficiency.
Nexus Water Group's President and CEO, Rob MacLean, noted that divesting these assets is a part of a broader strategy to refocus on core competencies while collaborating with CWT to ensure a seamless transition for employees and customers.
The deal has received unanimous approval from both companies' boards and will be funded through existing debt and equity facilities. CWT expects this acquisition to be accretive to its operations within a year, reinforcing its commitment to delivering quality water and wastewater services in the Western U.S.
MWN-AI** Analysis
California Water Service Group (CWT) is strategically positioning itself as a dominant player in the water utility sector with its recent acquisition of Nexus Water Group’s Nevada and Oregon water and wastewater systems. This acquisition adds approximately 36,000 equivalent residential connections and reinforces CWT's footprint, solidifying its status as the largest regulated water utility in the Western U.S.
Investors should view this acquisition favorably as it is expected to be accretive to CWT's operations within a year of closing, which could enhance revenue and bolster shareholder value. The transaction, valued at approximately $218 million, will be funded through existing capital resources, indicating prudent financial management and a focus on growth. With a combined rate base of around $109 million as of December 31, 2025, CWT is setting itself up for ongoing capital investments that promise to benefit customers in the newly acquired regions.
Additionally, the establishment of a scalable regional platform suggests that CWT is positioned for further expansion. This creates embedded growth opportunities that could lead to a more diversified revenue stream, benefiting stakeholders in the longer term. The current Board's unanimous approval and the expected closing conditions signal a robust commitment to this strategy.
Investors following CWT should monitor the upcoming conference call set for 8 a.m. PT on February 26, for insights on operational integration and growth pathways, as management discusses how they plan to capitalize on their enlarged customer base.
In summary, California Water Service Group’s acquisition appears to be a well-calculated move that promises to enhance its market position and operational performance. A cautious investment outlook is warranted, as the company could leverage its expanded infrastructure for future growth, making CWT a stock to keep on the watchlist.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Adds approximately 36,000 equivalent residential connections across water and wastewater systems in Nevada and Oregon
- Expands footprint and solidifies Company’s position as the largest regulated water utility in the western United States
- Establishes a scalable regional platform with embedded growth opportunities
- Provides a clear pathway for new capital investments benefiting Oregon and Nevada water and wastewater customers
- Conference call at 8 a.m. PT on February 26
SAN JOSE, Calif., Feb. 25, 2026 (GLOBE NEWSWIRE) -- California Water Service Group (NYSE: CWT), a leading publicly traded water utility serving California, Hawaii, New Mexico, Washington, and Texas, announced today that it has reached an agreement to purchase Nexus Water Group’s Nevada and Oregon water and wastewater systems, adding approximately 36,000 equivalent residential connections and a combined rate base of approximately $109 million at December 31, 2025.
“This is a great way to kick off our centennial year,” said Chairman and Chief Executive Officer Martin A. Kropelnicki. “We started out serving four small California communities in 1926, and with this acquisition, we will serve roughly two million people through approximately 584,000 service connections in seven western states. We look forward to completing the transaction and integrating the systems in a way that provides opportunities for employees and excellent service to customers,” he said.
Nexus Water Group President and CEO Rob MacLean said, “Nexus is committed to driving value through our long-term strategy. With this divestment, we are right-sized and strategically positioned for continued growth. We look forward to sharpening our focus where we lead the market and can build on our competitive edge in the industry. We will work closely with California Water Service Group to ensure this transition is seamless for employees and customers.”
According to Kropelnicki, the purchase price of approximately $218 million, which is subject to typical closing adjustments, will be funded with working capital and existing debt and equity facilities. The Company expects to complete the transaction by the end of 2026, subject to customary closing conditions, including approval from applicable public utility commissions, and expects it to be accretive to existing operations within a year of closing.
“I want to thank Nexus Water Group for the opportunity to partner on this transaction as we expand our footprint across the western United States,” Kropelnicki said.
The transaction was unanimously approved by the Boards of Directors of both Company and Nexus Water Group. Baker McKenzie served as the Company’s external legal counsel.
About California Water Service Group
Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas. Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (PSLRA). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management's beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing the anticipated closing and timing of the Company’s acquisition of Nexus Water Group’s Nevada and Oregon subsidiaries and expected integration of the acquired systems and benefits resulting from the acquisition. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to, the Company’s ability to complete the acquisition of Nexus Water Group’s Nevada and Oregon subsidiaries in line with management’s expectations, the Company’s ability to integrate and operate the acquired operations in an effective and accretive manner and those described under the section entitled “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission filings. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
| CONTACT: | Shannon Dean, (408) 367-8243 |
| Jim Lynch, (408) 367-8200 |
FAQ**
How does the acquisition of Nexus Water Group’s Nevada and Oregon operations enhance California Water Service Group CWT's ability to serve its existing customer base across the western United States?
What specific embedded growth opportunities does California Water Service Group CWT anticipate from expanding its footprint in Nevada and Oregon?
Can California Water Service Group CWT provide details on the expected capital investments that will benefit water and wastewater customers as a result of this acquisition?
What measures will California Water Service Group CWT take to ensure a seamless transition for employees and customers during the integration of Nexus Water Group’s systems?
**MWN-AI FAQ is based on asking OpenAI questions about California Water Service Group (NYSE: CWT).
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