Pennsylvania American Water acquires Appalachian Utilities for $3.5 million

MECHANICSBURG, Pa. - Pennsylvania American Water, a subsidiary of American Water (NYSE:AWK) - a utility giant with a $28 billion market capitalization - completed its acquisition of Appalachian Utilities, Inc. water system for approximately $3.5 million, according to a company press release issued Monday.

The acquisition brings approximately 1,450 customer connections in Clinton County, Pennsylvania under Pennsylvania American Water’s management, including customers in the City of Lock Haven, Avis Borough, and Pine Creek and Dunnstable townships. According to InvestingPro data, American Water maintains strong financial health metrics with a 60% gross profit margin and steady revenue growth of 13% over the last twelve months.

The Pennsylvania Public Utility Commission approved the transaction on September 11, 2025. Pennsylvania American Water will maintain the current rate structure for customers of the acquired system.

As part of the deal, Pennsylvania American Water has committed to investing more than $6.2 million over the next five years to upgrade the Appalachian Utilities system to meet regulatory, safety and security standards.

The company also announced that it has retained all three full-time employees from the acquired system.

Frank Sargent, Jr., former Appalachian Utilities President, cited challenges in the water business as a factor in the decision to sell after 30 years of service to the community.

Pennsylvania American Water, a subsidiary of American Water (NYSE:AWK), serves approximately 2.4 million people across Pennsylvania. The company offers customer assistance programs for income-eligible customers, including grants of up to $500 per year and discounts on monthly service fees. InvestingPro analysis reveals that AWK has maintained dividend payments for 18 consecutive years, with an attractive 2.3% current yield. For deeper insights into AWK’s financial performance and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, American Water Works Company has announced an all-stock merger with Essential Utilities, creating a leading regulated U.S. water and wastewater public utility. The merger is set to result in a combined market capitalization of approximately $40 billion and an enterprise value of about $63 billion. In a separate development, New Jersey American Water has agreed to acquire Gordon’s Corner Water Company, pending approval from the New Jersey Board of Public Utilities. This acquisition will add approximately 15,000 customers to its service area.

Additionally, Illinois American Water has completed the $3 million acquisition of Madison’s wastewater system, expanding its service to about 1,500 new customers. Missouri American Water has also signed an agreement to purchase the City of Neosho’s water and wastewater systems for $34.5 million, awaiting regulatory review. Furthermore, California American Water has finalized its acquisition of the Bass Lake Water Company, adding around 1,000 customers to its service area. These recent developments highlight a period of significant expansion for American Water Works and its subsidiaries.

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