American Water agrees to acquire Keystone Clearwater Solutions
American Water recently announced that it has agreed to acquire Keystone Clearwater Solutions from Rex Energy Corporation. The transaction values the company at $130 million.
VOORHEES, NJ, June 19, 2015 -- American Water (AW), the largest publicly traded U.S. water and wastewater utility company, has agreed to acquire Keystone Clearwater Solutions -- a water service provider offering water-related services to the oil and gas industry, primarily in the Appalachian region of Pennsylvania, Ohio and West Virginia -- from Rex Energy Corporation. The transaction values the company at $130 million.
"Keystone Clearwater Solutions provides turn-key water solutions to the shale gas industry in a safe and environmentally responsible manner," said Susan Story, president and CEO of American Water. "Keystone's offerings are in line with American Water's core competencies -- supplying, transmitting, pumping, and storing water, and building the infrastructure required to do so.
Upon completion of the acquisition, Keystone will operate as a separate, independent subsidiary of AW. The transaction is anticipated to close in July, 2015. "This acquisition delivers on one of our growth strategies to develop complementary businesses," Story added. "Coupled with our existing activity in shale, the Keystone acquisition will enhance our ability to provide additional water services solutions to shale development companies.
About American Water
Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,400 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 45 states and parts of Canada. For more information, visit www.amwater.com.