California Water Service Group has announced an agreement to acquire the Nevada and Oregon water and wastewater systems of Nexus Water Group, reinforcing its position as the largest regulated water utility in the western United States and creating a platform for future expansion.
The transaction has an agreed value of approximately $218 million, subject to customary closing adjustments. The acquisition will add around 36,000 equivalent residential connections across water and wastewater operations in Nevada and Oregon and includes a combined regulated rate base of about $109 million as of 31 December 2025. California Water Service Group plans to fund the purchase using working capital alongside existing debt and equity facilities.
Chairman and Chief Executive Officer Martin A. Kropelnicki linked the announcement to a milestone year for the company, stating: “This is a great way to kick off our centennial year. 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.”
The acquisition is expected to close by the end of 2026, subject to standard regulatory approvals, including consent from the relevant public utility commissions. California Water Service Group expects the transaction to become accretive to existing operations within one year of completion, while providing a pathway for new capital investment benefiting customers in both states.
The agreement received unanimous approval from the boards of directors of both companies. Baker McKenzie acted as external legal counsel to California Water Service Group.
