California Water Service Group has announced an agreement to acquire Nexus Water Group’s water and wastewater systems in Nevada and Oregon. This strategic move is set to significantly expand the company’s customer base by approximately 36,000 equivalent residential connections and bolster its position as the largest regulated water utility in the western United States. The acquisition is expected to be completed by the end of 2026.
The acquisition marks a significant milestone for California Water Service Group as it approaches its centennial year. The addition of Nexus Water Group’s systems will extend the company’s service to approximately two million people across seven western states. Chairman and CEO Martin A. Kropelnicki highlighted the acquisition as a “great way to kick off our centennial year,” emphasizing the growth from serving four small California communities in 1926 to a much broader regional presence.
Nexus Water Group’s President and CEO, Rob MacLean, stated that the divestment allows Nexus to “sharpen our focus where we lead the market and can build on our competitive edge.” Both companies’ boards have unanimously approved the transaction, aiming for a seamless transition for employees and customers.
The purchase price for the acquisition is approximately $218 million, subject to standard closing adjustments. California Water Service Group plans to fund the transaction using its existing working capital and debt and equity facilities. The company anticipates the acquisition to be accretive to its existing operations within one year of closing.
The deal is contingent upon customary closing conditions, including approval from applicable public utility commissions. This regulatory oversight is a critical step in finalizing the transaction, which is targeted for completion by the end of 2026.
This acquisition is expected to create a scalable regional platform for California Water Service Group, offering embedded growth opportunities. It also provides a clear pathway for new capital investments that are anticipated to benefit water and wastewater customers in both Nevada and Oregon. The company will host a conference call on February 26, 2026, at 8 a.m. PT to discuss the acquisition in further detail.