American Water Works Company, Inc. (NYSE: AWK), the largest
publicly traded U.S. water and wastewater utility company, today
announced that it has agreed to acquire Pivotal Home Solutions from
Southern Company Gas, a subsidiary of Southern Company, for
approximately $365 million in cash, including estimated working
capital.
Acquired through its American Water Enterprises (AWE) subsidiary
and highly complementary to AWE’s Homeowner Services Group (HOS),
Pivotal Home Solutions is a home warranty business operating in 18
states with about 1.2 million customer contracts. Pivotal Home
Solutions offers coverage for a wide variety of home appliances,
heating and cooling systems, and lines in and around a home.
“The employees of Pivotal Home Solutions, like those in American
Water’s HOS group, are focused on providing outstanding customer
service, as evidenced by both of our organizations achieving the
Better Business Bureau’s highest rating.” said Susan Story,
president and CEO of American Water. “Additionally, this is an
opportunistic transaction for American Water as it provides a
strong platform for long-term and capital-light organic
growth.”
Deborah Degillio, president of American Water Enterprises,
added, “This acquisition delivers on one of our growth strategies
to expand our complementary businesses. Coupled with our existing
Homeowner Services portfolio, this acquisition will enhance our
ability to provide additional home warranty solutions across the
U.S., nearly doubling our customer contracts. We look forward to
leveraging the expertise of the talented team of Pivotal Home
Solutions employees who have built this successful
organization.
“This acquisition also creates a tremendous opportunity from a
product line perspective and for cross-selling our core water and
wastewater products,” added Degillio.
The closing of the acquisition is subject to certain conditions,
including obtaining necessary regulatory approvals and consents,
the expiration or termination of the applicable waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and
other customary closing conditions and deliveries. Upon completion
of the acquisition, Pivotal Home Solutions will be part of American
Water’s home warranty businesses, while maintaining its current
name and main operations in Naperville, Ill.
American Water anticipates closing the transaction by second
quarter 2018.
American Water’s Homeowners Services Group operates in 43 states
and Washington, D.C., and currently services more than 1.8 million
contracts. The Homeowner Services Group has been providing
protection programs for more than 15 years, has an A+ Rating from
the Better Business Bureau and holds a 97 percent customer
satisfaction rating. It also provides its Protection Programs to
homeowners through municipal partnerships with the New York City
Department of Environmental Protection, Orlando Utilities
Commission, Nashville Metro Water Services and others.
Investor Conference Call
An investor conference call regarding the Pivotal Home Solutions
acquisition and a strategic update will take place on Thursday,
Apr. 12, 2018, at 9 a.m. Eastern Daylight Time. Interested parties
may listen to the conference call over the Internet by logging on
to the Investor Relations homepage at ir.amwater.com. Presentation
slides that will be used in conjunction with the investor
conference call will also be made available online following the
call. The company recognizes its website as a key channel of
distribution to reach public investors and as a means of disclosing
material non-public information to comply with its obligations
under SEC Regulation FD.
Following the investor conference call, an audio archive of the
call will be available through Apr. 18, 2018. U.S. callers may
access the audio archive toll-free by dialing 1-877-344-7529.
International callers may listen by dialing 1-412-317-0088. The
access code for replay is 10119143. The audio webcast will be
available on American Water's investor relations homepage at
ir.amwater.com through May 12, 2018. After that, the archived
webcast will be available for one year at
ir.amwater.com/event-replays.
About Pivotal Home Solutions
Since 1992, the home warranty plans offered by Pivotal Home
Solutions have helped protect homeowners from the costs of
unexpected repairs to their home’s systems, lines and/or
appliances. Pivotal Home Solutions’ operations includes
approximately 1.2 million repair and maintenance plans in 18
states.
About American Water
With a history dating back to 1886, American Water is the
largest and most geographically diverse U.S. publicly traded water
and wastewater utility company. The company employs more than 6,900
dedicated professionals who provide regulated and market-based
drinking water, wastewater and other related services to an
estimated 15 million people in 46 states and Ontario, Canada.
American Water provides safe, clean, affordable and reliable water
services to our customers to make sure we keep their lives flowing.
For more information, visit amwater.com and follow American Water
on Twitter, Facebook and LinkedIn.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements included in this press release are
forward-looking statements within the meaning of the federal
securities laws. In some cases, these forward-looking statements
can be identified by words with prospective meanings such as
“intend,” “plan,” “estimate,” “believe,” “anticipate,” “expect,”
“predict,” “project,” “propose,” “assume,” “forecast,” “outlook,”
“future,” “pending,” “goal,” “objective,” “potential,” “continue,”
“seek to,” “may,” “can,” “will,” “should” and “could,” or the
negative of such terms or other variations or similar expressions.
Forward-looking statements relate to, among other things, the
anticipated timing of the closing and the ability to obtain the
regulatory consents and approvals required to complete, and
satisfying other conditions to the closing of, the acquisition of
Pivotal Home Solutions; the ability of the company to finance the
purchase price for the acquisition; the occurrence of the benefits
and synergies expected or predicted to occur as a result of the
completion of such acquisition; and unexpected costs, liabilities
or delays associated with the acquisition and integration of
Pivotal Home Solutions’s assets, business and operations. These
forward-looking statements are predictions based on the company’s
current expectations and assumptions regarding future events. They
are not guarantees or assurances of any outcomes, performance or
achievements, and readers are cautioned not to place undue reliance
upon them. The forward-looking statements are subject to a number
of estimates and assumptions, and known and unknown risks,
uncertainties and other factors. Actual results may differ
materially from those discussed in the forward-looking statements
included in this press release as a result of the factors discussed
in the company’s Form 10-K for the year ended Dec. 31, 2017, and in
other filings with the Securities and Exchange Commission, and the
additional risks, uncertainties, assumptions and limitations
described herein.
Click here to subscribe to Mobile Alerts for
American Water.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180411006350/en/
American Water Works Company, Inc.Edward VallejoVice President,
Investor Relations856-566-4005edward.vallejo@amwater.comorMaureen
DuffyVice President, Communications and Federal
Affairs856-309-4546maureen.duffy@amwater.com
American Water Works (NYSE:AWK)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Water Works (NYSE:AWK)
Historical Stock Chart
From Apr 2023 to Apr 2024