California Water Service Group to Invest $218M for 36,000 New Connections
California Water Service Group agreed to buy Nexus Water Group’s Nevada and Oregon water and wastewater systems for about $218 million, adding roughly 36,000 equivalent residential connections and a combined $109 million rate base. The transaction is expected to close by end-2026 and become accretive within a year.
1. Acquisition Terms
California Water Service Group agreed to purchase water and wastewater systems from Nexus Water Group in Nevada and Oregon for approximately $218 million. The deal will add about 36,000 equivalent residential connections and a combined rate base of roughly $109 million as of December 31, 2025.
2. Financing and Timing
The company plans to fund the acquisition using working capital, existing debt, and equity facilities. Closing is targeted by the end of 2026, subject to customary regulatory approvals, and management expects the transaction to be accretive to operations within one year after closing.
3. Strategic Outlook
This acquisition marks a key expansion as California Water Service Group celebrates its centennial year, extending service to roughly two million people through about 584,000 connections across seven western states. Management highlights opportunities for employees and improved customer service through system integration.