A new example of mergers and acquisitions in the U.S. water industry! H2O America spent $540 million to acquire Texas peer Quadvest
H2O America announced the acquisition of assets from Texas competitor Quadvest for $540 million. The transaction will be completed through its subsidiary and is expected to close in mid-2026, pending regulatory approval. This move will help H2O America expand its business in the Texas market and enhance its competitiveness. H2O plans to invest over $500 million in Texas over the next five years
Zhitong Finance APP learned that H2O America (HTO.US) has agreed to acquire the assets of its competitor, water and wastewater treatment company Quadvest, for $540 million. This transaction will help the company expand its business in the rapidly growing Texas market. According to a statement released on Tuesday, the acquisition will be completed through its subsidiary, Texas Water Company (TWC), and Texas Water Operations Services Company. The deal is financed by a combination of private bonds and equity and is expected to be completed by mid-2026, pending regulatory approval.
H2O America CEO stated in the announcement: "Integrating Quadvest into TWC provides H2O America with an excellent opportunity to strategically diversify, strengthen, and expand its business while also growing in one of the fastest-growing regions in the U.S."
In the competitive U.S. water utility market, companies are merging to seek economies of scale to fund the massive investments needed for large-scale renovations of aging infrastructure. Data shows that the value of announced water utility transactions in 2025 has risen by about 20%, reaching $7 billion. These transactions include Eversource Energy's sale of Aquarion Water Co. to Aquarion Water Authority for $2.4 billion (including debt).
Quadvest is one of the largest water supply and wastewater treatment companies in Texas, with over 50 water treatment plants and 27 wastewater treatment plants. Its assets will assist H2O America in expanding from San Antonio and Austin to the Greater Houston area. According to the statement, H2O America plans to invest over $500 million in Texas over the next five years.
H2O America operates other water utility businesses in Connecticut, Maine, and California. The company underwent a rebranding in May, previously known as SJW Group
