California Water Service (CWT) Expands With Nexus Water Systems Deal

California Water Service Group (NYSE:CWT) is included among the Dividend Kings List: Top 15 Stocks.

On February 24, California Water Service Group (NYSE:CWT) announced an agreement to purchase Nexus Water Group’s water and wastewater systems in Nevada and Oregon. The deal will add about 36,000 equivalent residential connections and a combined rate base of roughly $109 million as of December 31, 2025.

Chairman and Chief Executive Officer Martin A. Kropelnicki described the acquisition as an important step for the company as it enters a milestone year. He made the following comment:

“This is a great way to kick off our centennial year. 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.”

Kropelnicki said the purchase price is about $218 million, subject to standard closing adjustments. The company plans to fund the deal using working capital and existing debt, and equity facilities. Management expects the transaction to close by the end of 2026, pending customary conditions, including approvals from the relevant public utility commissions. The company also expects the acquisition to become accretive to existing operations within a year after closing.

California Water Service Group (NYSE:CWT) serves as the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, along with Texas Water Service, a utility holding company. Together, these businesses provide regulated and non-regulated water and wastewater services to more than 2.1 million people across California, Hawaii, New Mexico, Washington, and Texas.

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