SJW Group Announces Texas Subsidiary Has Closed on Acquisition of Texas Country Water

Rhea-AI Summary

SJW Group (NYSE: SJW) has announced the acquisition of Texas Country Water, marking the fourth acquisition in Texas within the last year. This strategic move adds over 100 water customers and increases SJWTX's network to more than 24,000 service connections, reflecting a 20% growth in customer base. The company is investing $24.5 million in capital improvements for 2022 to enhance service reliability and quality. SJWTX operates in one of the fastest-growing regions between Austin and San Antonio, catering to a growing population.

Positive

• Acquisition of Texas Country Water expands customer base by over 100.
• Total service connections exceed 24,000, representing a growth rate of approximately 20%.
• Investment of $24.5 million planned for infrastructure improvements in 2022.

Negative

• None.

Fourth Texas acquisition in the past 12 months

20% customer growth over the past 12 months

SAN JOSE, Calif.--(BUSINESS WIRE)-- SJW Group (NYSE: SJW) today announced that its Texas subsidiary, SJWTX Inc., which does business as the Canyon Lake Water Service Company, has closed on the purchase of Texas Country Water in Comal County, Texas. TCW is the fourth Texas acquisition by SJWTX in the past 12 months. Over that time, SJWTX has added more than 1,900 water and wastewater connections through acquisitions. The overall growth rate for the same period is about 20% when organic growth is included.

“SJWTX is located in the growth corridor between Austin and San Antonio, one of the fastest-growing population centers in the nation,” stated Eric W. Thornburg, chair, president and CEO of SJW Group. Mr. Thornburg further stated, “Being in the path of organic growth, in addition to making prudent acquisitions of surrounding water systems, have increased our footprint, which benefits customers, communities and the environment through SJW Group’s access to capital, management and technical resources.”

SJWTX’s service area includes Comal, Hays and Kendall counties — three of the five fastest-growing U.S. counties with a population of more than 10,000 from 2010 to 2019, according to the U.S. Census Bureau. SJWTX’s other completed acquisitions over the past 12 months include Clear Water Estates, Kendall West and Bandera East utilities.

Thomas Hodge, president of SJWTX, stated, “Our team of local Texas water professionals looks forward to serving our new customers.” Mr. Hodge further stated, “SJWTX is continually investing in infrastructure to serve this growing region. Our planned capital budget for our Texas operations is $24.5 million in 2022, with significant investments planned in our water distribution system to enhance system reliability, ensure continued water quality and reduce water lost to leaks. The TCW acquisition will not affect current rates for TCW customers or those of the Canyon Lake Water Service Company.”

TCW serves more than 100 water customers and borders SJWTX’s existing operations. This is the 15th acquisition by SJWTX since 2006. Over the past 15 years, the company has more than tripled in size, from 6,500 to more than 24,000 water and wastewater service connections.

About SJWTX dba Canyon Lake Water Service Company

SJWTX, a subsidiary of SJW Group, is a public water utility providing service to approximately 72,000 people through more than 24,000 water and wastewater service connections in a service area comprising about 270 square miles in Bandera, Comal, Blanco, Hays, Kendall, Medina and Travis counties. It is located between Austin and San Antonio.

About SJW Group

SJW Group is among the largest investor-owned pure play water and wastewater utilities in the United States, providing life-sustaining and high-quality water service to nearly 1.5 million people. SJW Group’s locally led and operated water utilities — San Jose Water Company in California, Connecticut Water Company in Connecticut, Maine Water Company in Maine and SJWTX Inc. (dba Canyon Lake Water Service Company) in Texas — possess the financial strength, operational expertise and technological innovation to deliver outstanding service to customers, safeguard the environment and provide opportunities to employees. SJW Group remains focused on investing in its operations, remaining actively engaged in its local communities and delivering continued sustainable value to its shareholders. For more information about SJW Group, please visit www.sjwgroup.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “projects,” “strategy,” or “anticipates,” or the negative of those words or other comparable terminology. These forward looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict.

These forward-looking statements involve a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the effect of water, utility, environmental and other governmental policies and regulations, including actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures and other decisions; (2) changes in demand for water and other services; (3) the impact of the Coronavirus (“COVID-19”) pandemic on our business operation and financial results; (4) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (5) climate change and the effects thereof; (6) unexpected costs, charges or expenses; (7) our ability to successfully evaluate investments in new business and growth initiatives; (8) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (9) the risk of work stoppages, strikes and other labor-related actions; (10) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (11) changes in general economic, political, business and financial market conditions; (12) the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions; and (13) legislative and general market and economic developments. The risks, uncertainties and other factors may cause the actual results, performance or achievements of SJW Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Results for a quarter are not indicative of results for a full year due to seasonality and other factors. Other factors that may cause actual results, performance or achievements to materially differ are described in SJW Group’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC. Forward-looking statements are not guarantees of performance, and speak only as of the date made. SJW Group undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005831/en/

Media contact

Larry Jackson

Director of Customer Service and Communications

Larry.Jackson@clwsc.com

830.312.4566

Investor contact

Andrew Walters

Chief Corporate Development Officer and Integration Executive

860.664.6268

Source: SJW Group

FAQ

What is the significance of SJW Group's recent acquisition of Texas Country Water?

The acquisition expands SJW Group's customer base and service connections, bolstering its presence in a rapidly growing region.

How many customers does Texas Country Water serve after the acquisition?

Texas Country Water serves over 100 water customers following its acquisition by SJW Group.

What are the expected improvements from the $24.5 million investment by SJW Group?

The investment aims to enhance system reliability, ensure water quality, and reduce water lost to leaks.

How has SJW Group's customer base changed in the past year?

SJW Group has experienced a 20% customer growth in the last 12 months, adding more than 1,900 water and wastewater connections.