American Water Works to Acquire Essential Utilities for $20.24 Billion

Essential Utilities, Inc. (WTRG) entered a merger agreement on October 27, 2025, to be acquired by American Water Works Company, Inc. (AWK) in an all-stock deal valued at $20.24 billion.

Deal Structure:

Essential shareholders will receive 0.305 shares of American Water for each share of Essential they own at the closing of the transaction. This exchange ratio implies a price of $43.18 per share, which is at a premium of 4.78% from the stock’s last close.

Company Profile:

Essential Utilities is a Bryn Mawr–based regulated utility company that, through its Aqua and Peoples brands, provides water, wastewater, and natural gas services to millions of customers across multiple U.S. states.

American Water is the largest regulated water and wastewater utility in the United States, providing safe, clean, and reliable water services to over 14 million people across 14 states and 18 military installations.

Deal Details and Timeline:

After the merger, American Water shareholders will own about 69% of the combined company, while Essential shareholders will own about 31%.

The combined company would have a water and wastewater rate base of approximately $29.3 billion, serving about 4.7 million connections across 17 states and 18 military installations.

American Water CEO John Griffith will become CEO of the combined company, and Essential CEO Christopher Franklin will serve as Executive Vice Chair of the Board.

David Bowler, American Water’s current CFO, will continue in that role. Daniel Schuller, Essential’s CFO, will become Chief Strategy Officer; Colleen Arnold, President of Essential’s Aqua Water, will become President of Regulated Operations; and Michael Huwar, President of Peoples Natural Gas, will continue to lead the natural gas business.

The combined company’s board will consist of 15 members: 10 from American Water and five designated by Essential. Karl Kurz, the independent Chair of American Water’s board, will continue in that role.

The combined company will be based in Camden, New Jersey, and Essential’s offices in Bryn Mawr and Pittsburgh will continue to operate. The company will keep the name “American Water”.

The deal is expected to close by the end of the first quarter of 2027.

For this transaction, Essential Utilities was advised by Moelis & Co. as financial advisor and Gibson, Dunn & Crutcher as legal counsel. American Water received financial advice from BofA Securities and legal counsel from Skadden, Arps, Slate, Meagher & Flom.

Deal Metrics:

For more comprehensive information about this merger and acquisition transaction, please refer to the Deal Metrics page here:

Deal Metrics for the acquisition of Essential Utilities, Inc. (WTRG) by American Water Works Company, Inc. (AWK)

The Deal Metrics page for each M&A includes:

-A spread history chart of the merger from announcement to completion or failure.
-Detailed events as the merger progresses through the HSR period, regulatory approvals, shareholder votes, etc.
-News and SEC filings.
-A history of deal updates.
-And much more.

Disclaimer: Please ensure to carry out your own due diligence before buying or selling any securities mentioned in this article. We cannot guarantee the completeness or accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article