California American Water Signs Agreement to Purchase Yerba Buena Water Company’s Assets
California American Water has agreed to acquire Yerba Buena Water Company's water distribution system in unincorporated Ventura County. The system serves approximately 249 customer connections and is located 34 miles from California American Water's Ventura District operations center. This acquisition will expand California American Water's presence in Ventura County, where it already serves about 28,000 customer connections in various communities.
Kevin Tilden, California American Water's President, expressed enthusiasm about providing new services to Yerba Buena's customers, including conservation programs, a 24-hour emergency call center, and ratepayer assistance programs. Richard Morris, Chairman of Yerba Buena Water Company, expressed confidence in California American Water's ability to maintain high service standards for their customers.
California American Water ha accettato di acquisire il sistema di distribuzione dell'acqua della Yerba Buena Water Company nella contea di Ventura non incorporata. Il sistema serve circa 249 connessioni di clienti ed è situato a 34 miglia dal centro operativo del distretto di Ventura di California American Water. Questa acquisizione espanderà la presenza di California American Water nella contea di Ventura, dove già serve circa 28.000 connessioni di clienti in varie comunità.
Kevin Tilden, presidente di California American Water, ha espresso entusiasmo nel fornire nuovi servizi ai clienti di Yerba Buena, tra cui programmi di conservazione, un centro di emergenza attivo 24 ore su 24 e programmi di assistenza per i clienti. Richard Morris, presidente della Yerba Buena Water Company, ha espresso fiducia nella capacità di California American Water di mantenere elevati standard di servizio per i loro clienti.
California American Water ha acordado adquirir el sistema de distribución de agua de la Yerba Buena Water Company en el condado de Ventura no incorporado. El sistema atiende aproximadamente 249 conexiones de clientes y se encuentra a 34 millas del centro de operaciones del distrito de Ventura de California American Water. Esta adquisición ampliará la presencia de California American Water en el condado de Ventura, donde ya atiende alrededor de 28,000 conexiones de clientes en varias comunidades.
Kevin Tilden, presidente de California American Water, expresó entusiasmo por ofrecer nuevos servicios a los clientes de Yerba Buena, incluidos programas de conservación, un centro de atención de emergencias disponible las 24 horas y programas de asistencia para los clientes. Richard Morris, presidente de la Yerba Buena Water Company, expresó confianza en la capacidad de California American Water para mantener altos estándares de servicio para sus clientes.
캘리포니아 아메리칸 워터가 예르바 부에나 워터 컴퍼니의 배급 시스템을 인수하기로 합의했습니다. 이 시스템은 약 249개의 고객 연결을 서비스하며, 캘리포니아 아메리칸 워터의 벤투라 지역 운영 센터에서 34마일 떨어진 곳에 위치해 있습니다. 이번 인수로 캘리포니아 아메리칸 워터는 이미 28,000개의 고객 연결을 서비스하고 있는 벤투라 카운티에서의 입지를 확장할 것입니다.
캘리포니아 아메리칸 워터의 사장인 케빈 틸든은 예르바 부에나 고객들에게 보존 프로그램, 24시간 긴급 상담 센터 및 요금 지원 프로그램 등 새로운 서비스를 제공하게 되어 기쁘다고 표현했습니다. 예르바 부에나 워터 컴퍼니의 회장인 리차드 모리스는 캘리포니아 아메리칸 워터가 고객을 위한 높은 서비스 기준을 유지할 수 있을 것이라고 확신했습니다.
California American Water a accepté d'acquérir le système de distribution d'eau de la Yerba Buena Water Company dans le comté de Ventura non incorporé. Le système dessert environ 249 connexions client et est situé à 34 miles du centre d'opérations du district de Ventura de California American Water. Cette acquisition permettra d'élargir la présence de California American Water dans le comté de Ventura, où elle dessert déjà environ 28 000 connexions client dans diverses communautés.
Kevin Tilden, président de California American Water, a exprimé son enthousiasme à l'idée de fournir de nouveaux services aux clients de Yerba Buena, notamment des programmes de conservation, un centre d'appels d'urgence 24 heures sur 24 et des programmes d'assistance aux clients. Richard Morris, président de la Yerba Buena Water Company, a exprimé sa confiance dans la capacité de California American Water à maintenir des normes de service élevées pour ses clients.
California American Water hat zugestimmt, das Wasserversorgungssystem der Yerba Buena Water Company zu übernehmen im unbeaufsichtigten Ventura County. Das System bedient etwa 249 Kundenanschlüsse und befindet sich 34 Meilen vom Betriebszentrum des Ventura District von California American Water entfernt. Diese Übernahme wird die Präsenz von California American Water im Ventura County erweitern, wo es bereits etwa 28.000 Kundenanschlüsse in verschiedenen Gemeinden bedient.
Kevin Tilden, Präsident von California American Water, äußerte Begeisterung darüber, den Kunden von Yerba Buena neue Dienstleistungen anzubieten, einschließlich Konservierungsprogrammen, einem 24-Stunden-Notrufzentrum und Unterstützungsprogrammen für Gebührenzahler. Richard Morris, Vorsitzender der Yerba Buena Water Company, äußerte Vertrauen in die Fähigkeit von California American Water, hohe Servicestandards für ihre Kunden aufrechtzuerhalten.
- Expansion of customer base by acquiring 249 new connections
- Strategic growth in Ventura County, complementing existing operations
- Opportunity to implement additional customer services and programs
- None.
Insights
The acquisition of Yerba Buena Water Company's assets by California American Water represents a strategic expansion in Ventura County, albeit on a relatively small scale. With only 249 customer connections being added to California American Water's existing 28,000 connections in the area, this acquisition will increase their customer base by less than
From a financial perspective, the impact on California American Water's parent company, American Water Works, is likely to be minimal. However, this move aligns with the company's strategy of growth through acquisitions in fragmented markets. The water utility sector often sees larger companies absorbing smaller ones to achieve economies of scale and improve operational efficiency.
Investors should note that while such small acquisitions may not significantly impact short-term financials, they contribute to long-term growth and market consolidation strategies. The proximity of Yerba Buena's system to California American Water's existing operations (34 miles from their Ventura District operations center) suggests potential for operational synergies and cost efficiencies.
Without disclosed financial terms, it's challenging to assess the deal's value. However, given the small customer base, it's unlikely to materially affect American Water Works' balance sheet or near-term earnings. Investors should view this as part of a broader, ongoing strategy rather than a transformative acquisition.
This acquisition by California American Water exemplifies a common trend in the water utility sector: consolidation of smaller, often family-owned or municipal water systems into larger, investor-owned utilities. Such consolidations are generally viewed positively by regulators and stakeholders for several reasons:
- Improved infrastructure investment capabilities
- Enhanced water quality management
- More robust customer service and support systems
- Greater operational efficiencies
The mention of 'robust conservation programs' and 'ratepayer assistance programs' in the announcement is particularly noteworthy. These programs are increasingly important in California, given the state's ongoing water scarcity issues and focus on affordability.
From a regulatory perspective, this acquisition will likely require approval from the California Public Utilities Commission (CPUC). The CPUC generally favors such consolidations when they demonstrably benefit customers and improve system reliability. The relatively small size of this acquisition and the geographical proximity to existing operations should facilitate a smooth regulatory approval process.
For the broader water utility sector, this transaction, while small, reinforces the ongoing trend of market consolidation. Investors in water utility stocks should continue to expect similar bolt-on acquisitions as part of these companies' growth strategies, particularly in regions with fragmented water system ownership.
“We are looking forward to being the new water provider to Yerba Buena’s customers,” said California American Water President Kevin Tilden. “Our talented team of experienced experts will support customers with robust conservation programs, a 24-hour emergency call center, ratepayer assistance programs as well as many other benefits in the coming years.”
California American Water serves approximately 28,000 customer connections in the
“When we made the decision to sell, we wanted to ensure the operations were handed over to an outfit that could provide the same great level of service our customers have come to expect,” said Richard Morris, Chairman of the Board of Directors of Yerba Buena Water Company. “We are confident that we have found that company in California American Water.”
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730349458/en/
Media
Evan Jacobs
Senior Director, Business Development, Communications & External Affairs
California American Water
Evan.Jacobs@amwater.com
Source: California American Water
FAQ
How many new customer connections will California American Water gain from the Yerba Buena Water Company acquisition?
Where is the Yerba Buena water system located in relation to California American Water's existing operations?
What additional services will California American Water offer to Yerba Buena's customers?
How many customer connections does California American Water currently serve in Ventura County?
