American Water Works Subsidiary Pennsylvania American Water Strikes $8M Deal For Audubon
Portfolio Pulse from Shivani Kumaresan
American Water Works Company Inc's subsidiary, Pennsylvania American Water, has agreed to acquire Audubon Water Company for approximately $8 million. The deal will see an affiliate of Pennsylvania American Water merge with Audubon, and Audubon shareholders will receive AWK shares in exchange for their Audubon shares. Pennsylvania American Water plans to invest over $20 million into the system to upgrade aging water infrastructure within the first five years of ownership.
September 22, 2023 | 10:30 am
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The acquisition of Audubon Water Company by AWK's subsidiary could potentially strengthen AWK's position in the water infrastructure sector. However, the planned $20 million investment in system upgrades may impact short-term profitability.
The acquisition of Audubon Water Company by AWK's subsidiary is a strategic move that could potentially strengthen AWK's position in the water infrastructure sector. However, the planned $20 million investment in system upgrades may impact short-term profitability, which could potentially affect AWK's stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100