American Water Works Company
) unit Pennsylvania American Water expanded its presence in
northeast Pennsylvania by acquiring two water systems for a total
price of $1.65 million.
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One of the properties is in Wayne County serving 1,200 residents
in Salem Township while the other is in Lackawanna County serving
500 residents in Roaring Brook Township. The nearness of these
properties to Pennsylvania American Water's existing operations
will allow the company to leverage its existing operation and
serve more consumers in the region.
Pennsylvania American Water's present acquisition followed a pair
of water systems acquired at 2012 end. The company added one
water system each in Monroe County and Pike County for a total of
The American Water Works unit has been performing well and has
taken the inorganic growth strategy to expand its operations.
Last year the company acquired six systems and expanded its
Pennsylvania holds a very important position in American Water
Works' overall operations. The company serves a customer
base of 2.2 million in Pennsylvania and 21.7% of its 2012
regulated revenue is generated from this state.
American Water Works has fixed a long-term earnings growth target
in the range of 7% to 10%. The strategic acquisitions are all
geared towards achieving this goal. Besides acquisitions, the
company is also making regulated investments, taking steps to
develop and maintain its infrastructure and introducing new
services to drive earnings.
American Water Works Company currently has a Zacks Rank #3
(Hold). We presently prefer
Aqua America Inc.
) having a Zacks Rank #1 (Strong Buy).
American States Water Company
Veolia Environnement S.A.
) also look favorable with a Zacks Rank # 2 (Buy).
Voorhees, NJ based American Water Works Company was founded in
1886. This water and wastewater utility caters to approximately
14 million residents across the country and parts of
Canada. With approximately 6,700 employees, the company's
market capitalization is $7.12 billion.