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California American Water Completes Acquisition of West San Martin Water Works

1. California American Water acquired West San Martin assets for $1.6 million. 2. The acquisition adds 325 connections to California American Water's customer base. 3. Customers will receive improved service options and stability. 4. Transition to California American Water begins in February 2025. 5. Community gains industry expertise and essential capital improvements.

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FAQ

Why Bullish?

The acquisition enhances AWK's customer base, indicating growth potential, akin to previous strategic expansions.

How important is it?

This strategic acquisition potentially increases revenue and regional market share for AWK.

Why Long Term?

Investments in infrastructure typically improve service standards and profitability over time.

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AWKCACI
PACIFIC GROVE, Calif.--(BUSINESS WIRE)--California American Water, a wholly owned subsidiary of American Water, announced today that it has completed its acquisition of the West San Martin Water Works (West San Martin) system assets for $1.6 million. The acquisition adds approximately 325 new water connections to the company’s current customer base, which already includes approximately 40,000 connections on the Monterey Peninsula and other parts of Monterey County. “We’re thrilled to begin serving West San Martin customers and to continue providing safe, clean, and affordable water service,” said Kevin Tilden, President, California American Water. “West San Martin customers will also benefit from new customer service options and programs offered by the company.” With the purchase of the West San Martin system, the community of San Martin will benefit from the industry expertise and experience that California American Water offers. Additionally, consolidation with a larger system will contribute to important rate stability for the community while also providing resources for the implementation of essential capital improvements. “For over 60 years West San Martin Water Works has been proud to serve our community with safe and reliable drinking water,” said Brian Ukestad, President, West San Martin Water Works. “For the last 40 years, our family has been honored to run the utility. Thank you for being wonderful customers and we are confident that California American Water will continue to provide safe and reliable water in the years ahead.” The acquisition of West San Martin was approved by the CPUC in January 2025, and water service provided by California American Water to West San Martin customers will begin in February 2025. Transitioning water service from West San Martin to California American Water will be seamless and will not require any action from customers. Customers are invited to meet California American Water representatives at a community workshop on Saturday, February 8 at 5 p.m. at the Wings of History Museum located at 12777 Murphy Avenue, Suite 201 in San Martin. Customers can also learn more at www.amwater.com or contact the company to report emergencies or for service inquiries at 888 237-1333. 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, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,700 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 California American Water California American Water, a subsidiary of American Water, provides high-quality and reliable water and wastewater services to approximately 700,000 people. For more information, visit www.californiaamwater.com and follow California American Water on LinkedIn, Facebook, X, and Instagram.

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