New Jersey American Water, a subsidiary of American Water Works Company, Inc., has agreed to purchase the Hopewell Borough water system for $6.4 million. The deal will add roughly 880 customer connections to the company’s regulated portfolio in New Jersey and is expected to close in the first half of 2026 after approval from the New Jersey Board of Public Utilities.
The acquisition is part of AWK’s broader strategy of targeted municipal water system purchases that drive rate‑base growth. By adding Hopewell, the company expands its footprint in a high‑density suburban market, increases economies of scale, and strengthens its position in a state that has been a key growth engine for the utility. The transaction also aligns with AWK’s recent Q3 2025 earnings, which showed a 4% increase in revenue and a 3% rise in adjusted operating income, underscoring the company’s ability to generate incremental cash flow from acquisitions.
Under the agreement, New Jersey American Water will invest $7 million over the first five years to upgrade aging assets, replace lead service lines, and enhance reliability. Lead service line replacement is scheduled to be completed by 2031, a target that aligns with state and federal water safety mandates. The investment reflects the company’s commitment to modernizing infrastructure in its newly acquired systems, a priority that has driven similar capital outlays in other recent acquisitions.
Management highlighted the strategic fit of the deal. Mark McDonough, President of New Jersey American Water, said the transition would be seamless for residents because the company has already supplied a portion of Hopewell’s water through a bulk agreement. He added that the investment would keep rates affordable while delivering high‑quality service. Hopewell Mayor Ryan Kennedy noted that the sale, approved by voters in a November 2025 referendum, would retire municipal debt and free up funds for community priorities.
The transaction is subject to regulatory approval. Once the New Jersey Board of Public Utilities clears the deal, the parties expect to finalize the closing in the first half of 2026, after which the new system will be fully integrated into New Jersey American Water’s operations.
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