H2O America announced that its regulated Texas water and wastewater utility, The Texas Water Company, Inc. (TWC), along with its affiliate Texas Water Operation Services, LLC (TWOS), has entered into agreements to acquire all assets owned by Quadvest, a regulated investor-owned water and wastewater utility based in the Houston metropolitan area.
Quadvest currently serves over 47,000 active connections, with more than 89,000 connections under contract and pending development. Its infrastructure includes 50 water treatment plants, 27 wastewater treatment plants, 89 lift stations, and underground assets, supporting approximately 69 developments.
According to the companies, the acquisition will result in increased operational scale, access to a growing development pipeline in the Houston area and expanded engineering and construction capabilities. TWC and Quadvest together are expected to become the second-largest investor-owned water and wastewater utility in Texas by number of connections.
Following the acquisition, H2O America estimates that Texas customers would represent approximately 17% of its total customer base as of December 31, 2024—up from approximately 7% previously—and projects that figure to grow to about 26% by 2029. H2O America plans to invest more than $500 million in Texas over the next five years and expects to raise its overall five-year capital spending plan by 6%, to approximately $2.1 billion.
Andrew F. Walters, Chief Executive Officer of H2O America, said, “The addition of Quadvest to TWC is a unique opportunity to strategically diversify, enhance, and expand H2O America’s operations in one of the nation’s fastest-growing regions, while strengthening our network of developers and driving stronger returns for our investors. TWC and Quadvest will remain rooted in the Texas communities they serve today and continue to invest in sustainable infrastructure. By combining Quadvest’s and TWC’s deep local expertise with H2O America’s robust national platform, we will meaningfully advance our central mission to provide communities with clean, high-quality water and exceptional service.”
H2O America plans to invest more than $500 million in Texas over the next five years and expects to raise its overall five-year capital spending plan by 6%, to approximately $2.1 billion
Mr. Walters added, “This combination is also expected to provide a stronger platform by enhancing our exposure to high-growth Texas markets, with Texas projected to become our second-largest utility operation by 2028. We expect the combination to be accretive to our long-term growth rate, support our consolidated credit profile, and drive continued investment opportunities for H2O America. We remain committed to opportunistically executing strategic M&A to drive value for customers and shareholders.”
Aundrea Williams, President of TWC, said, “Our combination with Quadvest represents an opportunity to grow our operations and provide safe, reliable, and sustainable water and wastewater solutions to tens of thousands of additional Texans. With increased scale, TWC will be well positioned to strengthen operational excellence, customer service, and infrastructure investment, while maintaining our and Quadvest’s shared commitment to local expertise and an ownership mindset. Our combination is a natural fit, bringing together two companies who have aligned cultures, a mutual focus on community investment, and benches of talent who will drive our strategy forward. We have deep respect for the legacy Quadvest has built under the leadership of the Sequeira family, and we are excited to welcome Quadvest’s talented team to TWC. We look forward to working together to deliver high-quality water and enhance the health and vitality of the Texas communities we serve.”
Simon Sequeira, Chief Executive Officer of Quadvest, stated, “We are pleased to join TWC, combining our talent, experience, and vision to deliver lasting value for our customers, business partners, and communities. One of the main reasons we chose TWC is their respect for the brand and the incredible team we have built at Quadvest. Together, we and TWC will unlock new opportunities for growth, innovation, and advancement for our people, while preserving the culture and vision that have always defined Quadvest. Combining with TWC will also enhance our ability to work with our business partners – including developers, builders, engineers, vendors, and community leaders – driving speed, flexibility, and the ability to get projects done. With increased capital, deeper operational capacity, and national backing, we believe we will be better positioned than ever to accelerate timelines, scale infrastructure, and deliver outstanding service. TWC and H2O America both share the deep dedication to quality, reliability, integrity, and local accountability that have driven Quadvest’s success for nearly 50 years.”
