M&A
confidence high
sentiment positive
materiality 0.90
H2O America to acquire Quadvest water and sewer assets for $540M; expands Texas footprint
H2O AMERICA
- Total purchase price of $540M: $483.6M for regulated business + $56.4M for wholesale business.
- Quadvest has over 47,000 active connections and 89,000+ connections under contract; 50 water treatment plants.
- Transaction expected to close by mid-2026; subject to PUCT approval and HSR antitrust clearance.
- Deal to be financed by private debt and equity; no financing condition; expected to be accretive to long-term EPS growth.
- Texas projected to become H2O America's second largest utility operation by 2028; combined five-year capex plan increased to ~$2.1B.