2005 - 2006 - Pinsent Masons Water Yearbook 2012

GERMANY PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
North America (USA and Canada) – American Water
Elizabethtown dates back to 1854 and American Water Works to 1886. American Water Works has
sought to create a national presence in the USA water market through a long-term acquisition
programme that started in earnest during 1996. Despite its aggressive acquisition programme, AW
seeks to concentrate on developing regional strength in water utility operation rather than merely
further the numbers served. Thus in August 2001 it sold certain activities in New England to Kelda
Group as Kelda’s Aquarion had a stronger presence in this region. In September 2001, American
Water Works agreed to a US$4.6 billion bid by RWE. A US$3.5 billion bid was rejected by AWW in
August 2001. AWW became part of the RWE Water division. TW entered the USA market in 2000
through an agreed US$948 million bid for E’town. The AWW transaction was subject to the approval
of utility regulatory commissions, which was completed in January 2003. Thames’ US activities
(Elizabethtown) were subsequently integrated into American Water.
From 2003 both companies were managed as American Water.
Major acquisitions, 1996-2002
Year Company Customers Cost (US$
million)
Turnover (US$ million)
1996 PG&W 133,484 409 N/A
1998 East Honolulu Community
Services
10,000 18 N/A
1999 National Enterprises Inc 1,700,000 700 N/A
1999 American Anglian (50%) 1,000,000 32 31 million (1999)
2000 UWR subsidiaries 122,500 50 N/A
2001 City of Coatesville 53,000 48 7 million (2001)
2001 Azurix North America 2,000,000 160 134 million (2001)
2002 Citizens Utilities subsidiaries 1,100,000 859 140 million (2001)
American Water is the largest water resourses company in North America, serving a population of
more than 16 million people conducting business across most of the United States and Canada. It
has regulated utility businesses located in 20 states and performs operations and maintenance
contract management services within those same states and an additional 9 states and 3 Canadian
provinces including contracts acquired from Azurix in August 2001. This also includes the Citizens
acquisition, which was completed in February 2002.
American Water’s regulated activities, 2005
Region Households served
Central 1,110,807
North Eastern 436,667
South Eastern 1,023,601
Western 271,058
Total 2,842,133
American Water, tuck-in acquisitions, 1998-2004
Year Transactions Customers Customers Total cost US$per
completed served per deal (US$million) customer
1998 22 26,608 1,209 47 1,772
1999 21 12,946 616 12 961
2000 12 37,629 3,136 52 1,385
2001 12 26,058 2,172 56 2,159
2002 9 32,706 3,634 40 976
2003 9 3,128 348 3 928
2004 7 2,899 415 5 1,674
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Pinsent Masons Water Yearbook 2005 – 2006