American Water Works (AWK) Reports Sale of Market-Based Contract Services Business for $27M to Veolia North America

July 9, 2018 11:53 AM EDT

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American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, today announced that it has agreed to sell the majority of its market-based Contract Services business to a unit of Veolia North America for $27 million.

As part of the sale agreement, 23 of American Water’s 33 operations and maintenance (O&M) contracts with municipalities and large industrial customers, along with incumbent employees, will transfer to Veolia. A few contracts will be retained, including Camden, North Brunswick, and South Orange, N.J., and Godfrey, Ill., due to proximity to existing regulated service areas. The remaining retained contracts are being sold to others or are near end of contract and will terminate in a short period of time.

American Water anticipates that the sale will close in the third quarter of 2018. In the meantime, American Water is working closely with Veolia to ensure a smooth transition for customers and employees.

With this agreement, American Water’s market-based businesses consist of Military Services Group, Homeowner Services (with the recent addition of Pivotal Home Solutions) and Keystone Clearwater Solutions.

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