California Water Service (CWT) Expands With Nexus Water Systems Deal

Core Viewpoint - California Water Service Group (NYSE:CWT) is expanding its operations through the acquisition of Nexus Water Group's water and wastewater systems, which will enhance its service capacity and customer base as it approaches its centennial year [2]. Group 1: Acquisition Details - The company announced an agreement to purchase Nexus Water Group's systems in Nevada and Oregon, adding approximately 36,000 equivalent residential connections and a combined rate base of about $109 million as of December 31, 2025 [2]. - The acquisition price is approximately $218 million, subject to standard closing adjustments, and will be funded through working capital, existing debt, and equity facilities [2]. - The transaction is expected to close by the end of 2026, pending approvals from relevant public utility commissions, and is anticipated to become accretive to existing operations within a year after closing [2]. Group 2: Company Overview - California Water Service Group serves as the parent company of several regulated utilities, including California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service, and Texas Water Service, providing services to over 2.1 million people across these states [3].