California American Water, a subsidiary of American Water Works Company, Inc., completed its acquisition of Yerba Buena Water Company on December 9 2025. The transaction, approved by the California Public Utilities Commission, adds roughly 250 residential and commercial customers to California American Water’s regulated portfolio and brings the purchase price to $1.2 million.
The deal is the ninth acquisition California American Water has closed in the past five years, a pace that has added more than 13,000 new water and wastewater customers since 2020. By acquiring smaller, community‑based systems, the company expands its service footprint in California while reinforcing its strategy of organic growth through targeted acquisitions that strengthen its rate‑base and support long‑term capital investment plans.
Integration of the new customers will be handled through California American Water’s existing MyWater online portal, allowing for a seamless transition of billing, service requests, and customer communications. The acquisition is expected to generate modest operational synergies, including shared infrastructure maintenance, consolidated procurement, and cross‑training of field staff, which should help offset the modest capital outlay and support the company’s goal of maintaining a stable rate‑base while improving service quality.
"We’re excited to welcome Yerba Buena Water Company customers to California American Water," said Sarah Leeper, President of California American Water. "Our team is committed to ensuring a smooth transition and providing safe, clean, and reliable water service as well as high‑quality customer care that our customers expect and deserve. We look forward to bringing our experience, expertise, and resources to support this community." Richard Morris, Chairman of the Board of Yerba Buena Water Company, added that the partnership will bring the expertise and investment needed to maintain and improve the water system for years to come.
The acquisition occurs against a backdrop of broader industry consolidation, including American Water Works Company’s pending merger with Essential Utilities, announced in October 2025. The combined entity will become one of the largest regulated water utilities in the UnitedSciences, and the Yerba Buena deal represents a strategic step in building a more resilient, geographically diversified portfolio that can better absorb regulatory and environmental headwinds.
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