Pennsylvania American Water is set to acquire Audubon Water Company (Audubon). Under the terms of the transaction, an affiliate of Pennsylvania American Water will merge with Audubon, with shareholders of Audubon Water receiving shares of AWK common stock in exchange for all of the issued and outstanding shares of Audubon, and subsequently, Audubon will merge into Pennsylvania American Water. The transaction values Audubon at approximately $8 million.   

Audubon is a private, investor-owned system serving approximately 2,900 customers in Lower Providence Township, Montgomery County, and is located directly between Pennsylvania American Water’s existing Royersford and Norristown water systems. 

“Through this transaction, our growing customer base will benefit from the financial investment needed to deliver necessary infrastructure improvements to secure long-term access to safe drinking water,” said Martha Russell, President of Audubon.

Pennsylvania American Water will, over time, interconnect Audubon’s system with Pennsylvania American Water’s Royersford and Norristown systems, eliminating the system’s reliance upon groundwater supply and the need for PFAS-related treatment upgrades.

This improvement will provide a cleaner and more reliable water source for Audubon’s customers as well as sufficient supply to support additional area growth. Within the first five years of ownership, the company plans to invest more than $20 million into the system to upgrade aging water infrastructure.

“We look forward to becoming the water service provider for these customers in Lower Providence Township, and we appreciate that the leadership at Audubon Water Company is entrusting us with this privilege,” said Pennsylvania American Water President Justin Ladner. “The interconnections, system upgrades, and source of supply improvements we will accomplish through this acquisition will greatly benefit area customers, while further promoting regionalization and consolidation of our Montgomery County systems.”

Pennsylvania American Water and Audubon Water Company will seek approval for the acquisition from the Pennsylvania Public Utility Commission (PUC) and the Pennsylvania Department of Environmental Protection. The transaction is expected to be completed in late 2024.

Pennsylvania American Water will adopt Audubon’s current rates at closing. The PUC regulates the company’s rates, and any future rate changes would have to be reviewed and approved by the PUC. Pennsylvania American Water offers grants and discounted services to customers who qualify through its H2O Help to Others Program.

Learn more at Pennsylvania American Water.