American Water's Indiana Arm Gets Nod to Buy Silver Creek Water

Group 1: Company Developments - American Water Works (AWK) announced the acquisition of Silver Creek Water Corporation for $45 million, expected to close in mid-November, adding 8,000 water customers to its Indiana American Water unit [1] - Indiana American Water has made strategic acquisitions in 2023, including Claypool Water System and Sunset Village Water System, which added 250 water customers [1] - AWK completed five acquisitions in the first half of 2024, adding nearly 33,400 new customers, with 22 pending acquisitions expected to add another 59,000 customers [3] Group 2: Industry Trends - The U.S. water industry is fragmented, with nearly 50,000 community water systems and 16,000 wastewater treatment systems, many of which are too small to perform necessary repairs, leading to service disruptions [2] - A significant portion of U.S. water infrastructure is nearing the end of its effective service life, necessitating investments for upgrades, prompting large water utility companies to acquire smaller players [2] - California Water Service Group (CWT) is also pursuing strategic acquisitions in high-growth markets, with recent acquisitions adding 1,800 customers [4] Group 3: Market Performance - AWK shares have outperformed the industry, gaining 21.4% in the past six months compared to the industry's 17.9% growth [5]