California Water Service Group Agrees To Purchase Nexus Water Group's Nevada And Oregon Water And Wastewater Systems For ~$218M

California Water Service Group (NYSE:CWT), a leading publicly traded water utility serving California, Hawaii, New Mexico, Washington, and Texas, announced today that it has reached an agreement to purchase Nexus Water Group's Nevada and Oregon water and wastewater systems, adding approximately 36,000 equivalent residential connections and a combined rate base of approximately $109 million at December 31, 2025.

"This is a great way to kick off our centennial year," said Chairman and Chief Executive Officer Martin A. Kropelnicki. "We started out serving four small California communities in 1926, and with this acquisition, we will serve roughly two million people through approximately 584,000 service connections in seven western states. We look forward to completing the transaction and integrating the systems in a way that provides opportunities for employees and excellent service to customers," he said.

According to Kropelnicki, the purchase price of approximately $218 million, which is subject to typical closing adjustments, will be funded with working capital and existing debt and equity facilities. The Company expects to complete the transaction by the end of 2026, subject to customary closing conditions, including approval from applicable public utility commissions, and expects it to be accretive to existing operations within a year of closing.

The transaction was unanimously approved by the Boards of Directors of both Company and Nexus Water Group. Baker McKenzie served as the Company's external legal counsel.