American Water Announces Completion of Sale of its Utility Operations in Michigan to Ullico

Rhea-AI Summary

American Water Works Company (NYSE: AWK) has completed the sale of its Michigan utility operations to Ullico's Triton Utilities for $6 million. This move aligns with AWK's strategy to focus on regions where it can deliver superior service and efficiency. The Michigan operations served approximately 12,000 residents across five townships, significantly enhancing Ullico’s capability to serve customers. The decision reflects AWK's ongoing efforts to streamline its operations and improve financial performance.

Positive

• Sale of Michigan utility operations for $6 million improves liquidity.
• Focus on operational efficiency and customer service enhances long-term strategy.

Negative

• Loss of approximately 5,000 customer connections in Michigan may impact revenue in the short term.

CAMDEN, N.J.--(BUSINESS WIRE)-- American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, today announced the close of the sale of its utility operations in Michigan to Ullico, Inc.’s infrastructure business, through its portfolio company, Triton Utilities, Inc., for a purchase price of $6 million in cash.

“We are pleased with the opportunity to partner with Ullico on the sale of our Michigan operation. They are well positioned to continue to serve the customers in the area, working with the local employees,” said Susan Hardwick, president and CEO of American Water. “This decision to sell these operations is consistent with our strategy to operate in states where we can best serve customers and drive efficiencies.”

American Water’s Michigan utility operations consist of approximately 5,000 customer connections and a population of approximately 12,000 across five townships in northern Houghton County, Michigan.

About American Water
With a history dating back to 1886, American Water (NYSE:AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs approximately 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

AWK-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20220204005354/en/

Investor Contact:

Aaron Musgrave

Senior Director, Investor Relations

(856) 955-4029

aaron.musgrave@amwater.com

Media Contact:

Ruben Rodriguez

Senior Director, External Communications

(856) 955-4180

ruben.e.rodriguez@amwater.com

Source: American Water

FAQ

What was the purchase price for the Michigan utility operations by AWK?

The purchase price for the Michigan utility operations was $6 million.

Who bought American Water Works' Michigan operations?

American Water Works' Michigan operations were bought by Ullico's Triton Utilities.

How many customer connections did AWK have in Michigan before the sale?

AWK had approximately 5,000 customer connections in Michigan.

What is the strategic importance of selling the Michigan utility operations for AWK?

The sale aligns with AWK's strategy to focus on regions where it can operate most efficiently and serve customers better.