California Water Service to Buy Nexus Water Assets for $218 Million
California Water Service Group will acquire Nexus Water Group’s Nevada and Oregon systems for about $218 million, adding 36,000 residential connections and a $109 million rate base. The deal, funded via existing debt and equity facilities, is slated to close by end-2026 and become accretive within one year.
1. Acquisition Details
California Water Service Group has agreed to purchase Nexus Water Group’s Nevada and Oregon water and wastewater systems for approximately $218 million. This transaction adds roughly 36,000 equivalent residential connections and a combined rate base of $109 million as of December 31, 2025.
2. Financial Structuring
The acquisition will be funded through the company’s working capital and existing debt and equity facilities, minimizing the need for new external financing. Management expects the transaction to be accretive to earnings within one year of closing.
3. Strategic Impact
The purchase expands the company’s footprint to serve nearly two million people through approximately 584,000 connections across seven western states. It further solidifies the company’s position as the largest regulated water utility in the region and creates a scalable platform for future growth.
4. Timeline and Approvals
The transaction is expected to close by the end of 2026, subject to customary closing conditions and approval from relevant public utility commissions. Preparatory integration planning is underway to ensure a seamless transition for customers and employees.