NW Natural Water Broadens Its Scope by Acquiring Operations & Maintenance Businesses

Rhea-AI Summary

NW Natural Water, a subsidiary of Northwest Natural Holding Company, has signed agreements to acquire Hiland Water Corporation and King Water Company, expanding its water and wastewater services business. The acquisitions will add approximately 15,000 connections to NW Natural Water's customer base. The company plans to provide operations and management support to water and wastewater system owners, leveraging shared personnel, technology, and expertise.

PORTLAND, Ore.--(BUSINESS WIRE)-- NW Natural Water Company, LLC (NW Natural Water), a wholly-owned subsidiary of Northwest Natural Holding Company (NYSE:NWN), recently signed agreements that launch its water and wastewater services business through the acquisition of Hiland Water Corporation and King Water Company, which currently serve approximately 15,000 connections.

Through the services business, NW Natural Water plans to provide operations and management support to water and wastewater system owners, working to create value by leveraging shared personnel, technology and expertise to help deliver clean, reliable water at a reasonable cost to customers.

The formation of this new services business is a natural extension of the company’s water and wastewater utility ownership business. It provides an opportunity to create long-term value by continuing to broaden NW Natural Water’s scope, expand its footprint, and serve additional customers and systems.

“I’m excited about this opportunity to continue the expansion of our water and wastewater business and bring additional talent from Hiland Water and King Water into our organization,” said Justin Palfreyman, NW Natural Water’s president. “These two acquisitions provide a strong platform that we believe can be scaled in the coming years. They allow us to continue doing what we’re passionate about: serving water and wastewater utility customers with a keen focus on safety, reliability and superior service.”

Silas Olson, General Manager of Hiland Water said, “Joining the NW Natural Water family is an exciting step for our business. We believe our partnership with NW Natural Water will provide additional financial strength, resources and expertise to support more water and wastewater utilities as they meet the needs of their communities.”

Established in 1991, King Water Company is a top-rated local business based in Coupeville, Washington and has consistently served nearly 200 systems in Northwest Washington including Whidbey Island, Skagit and Snohomish counties. Operating since 1997, Hiland Water Corporation is based in Newberg, Oregon and has regularly served over 30 systems throughout Oregon. The NW Natural Water family has welcomed the companies’ collective 40 employees to their new water services business.

The King Water acquisition closed on April 30. Hiland Water, which also owns roughly 2,300 water utility connections, is expected to close later this year following receipt of regulatory approvals. Upon closing of all pending acquisitions, NW Natural Water will serve over 168,000 people through nearly 68,000 meters and support about 15,000 connections through its services business.

About NW Natural Holdings

Northwest Natural Holding Company (NYSE: NWN) is headquartered in Portland, Oregon and has been doing business for over 160 years. It owns NW Natural Gas Company (NW Natural), NW Natural Water Company (NW Natural Water), NW Natural Renewables and other business interests.

We have a longstanding commitment to safety, environmental stewardship and the energy transition, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® in 2022 and 2023 as one of the World’s Most Ethical Companies®. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. Learn more in our latest ESG Report at nwnatural.com/about-us/the-company/sustainability.

NW Natural Water currently provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas and Arizona. Learn more about our water business at nwnaturalwater.com.

Additional information is available at nwnaturalholdings.com.

“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC

Forward Looking Statements

This press release, and other releases and presentations made by NW Natural Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," “assumes,” “continues,” “could,” "intends," "plans," "seeks," "believes," "estimates," "expects," “will,” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, goals, strategies, assumptions, estimates, expectations, expenses, future events, investments, growth and development, financial strength, resources, expertise, the water and wastewater utility strategy and related pending acquisitions, the likelihood, timing, and success associated with any transaction or conditions related thereto, the ability to scale businesses, financial results, value creation, strategic fit, revenues and earnings, performance, water and wastewater services and delivery, operations and maintenance support, safety, environmental stewardship, the energy transition, and other statements that are other than statements of historical facts.

Forward-looking statements are based on our current expectations and assumptions regarding NW Natural Holdings’ business, the economy, geopolitical factors, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic, or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors," and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in NW Natural Holdings’ most recent Annual Report on Form 10-K, as updated by subsequent filed reports, and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk," and Part II, Item 1A, "Risk Factors," in NW Natural Holdings’ quarterly reports filed thereafter.

All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Natural Holdings, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Natural Holdings undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

New factors emerge from time to time and it is not possible to predict all such factors, nor it is it possible to assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005454/en/

Business Development Contact: Nicholas Whitley, 832-714-1732, nicholas.whitley@nwnatural.com

Investor Contact: Nikki Sparley, 503-721-2530, nikki.sparley@nwnatural.com

Media Contact: David Roy, 503-610-7157, david.roy@nwnatural.com

Source: NW Natural

FAQ

What is the full name of the company acquiring Hiland Water Corporation and King Water Company?

The company acquiring Hiland Water Corporation and King Water Company is NW Natural Water, a subsidiary of Northwest Natural Holding Company.

How many connections will be added to NW Natural Water's customer base through the acquisitions?

Approximately 15,000 connections will be added to NW Natural Water's customer base through the acquisitions.

What services does NW Natural Water plan to provide to water and wastewater system owners?

NW Natural Water plans to provide operations and management support to water and wastewater system owners.

What is the goal of NW Natural Water's services business?

The goal of NW Natural Water's services business is to deliver clean, reliable water at a reasonable cost to customers by leveraging shared personnel, technology, and expertise.

When is the expected closing date for the acquisition of Hiland Water Corporation?

The acquisition of Hiland Water Corporation is expected to close later this year following receipt of regulatory approvals.