American Water Terminates Towamencin Deal, Sells System for $11.5M

TL;DR

AWK terminated the Towamencin deal, selling the wastewater system to the township for $11.5M.

AI Summary

American Water Works Company, Inc. announced on August 28, 2024, the termination of the Towamencin Asset Purchase Agreement. This termination is part of a process that will result in the sale of the Towamencin Wastewater System to the Towamencin Township Municipal Authority for a purchase price of $11.5 million.

Why It Matters

This filing indicates a change in strategy or a resolution of a prior agreement, impacting the company's asset portfolio and future revenue streams from the Towamencin Wastewater System.

Risk Assessment

Risk Level: low — The filing reports on the termination of an agreement and a subsequent sale, which is a routine business event rather than a significant unforeseen risk.

Key Numbers

• $11.5 million — Purchase Price (Sale of Towamencin Wastewater System)

Key Players & Entities

• American Water Works Company, Inc. (company) — Registrant
• Towamencin Asset Purchase Agreement (contract) — Agreement being terminated
• Towamencin Wastewater System (asset) — System being sold
• Towamencin Township Municipal Authority (company) — Purchaser of the asset
• $11.5 million (dollar_amount) — Purchase price for the Towamencin Wastewater System
• August 28, 2024 (date) — Date of the earliest event reported

FAQ

From the Filing

0001410636-24-000156.txt : 20240829 0001410636-24-000156.hdr.sgml : 20240829 20240829071905 ACCESSION NUMBER: 0001410636-24-000156 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20240828 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240829 DATE AS OF CHANGE: 20240829 FILER: COMPANY DATA: COMPANY CONFORMED NAME: American Water Works Company, Inc. CENTRAL INDEX KEY: 0001410636 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] ORGANIZATION NAME: 01 Energy & Transportation IRS NUMBER: 510063696 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34028 FILM NUMBER: 241258608 BUSINESS ADDRESS: STREET 1: 1 WATER STREET CITY: CAMDEN STATE: NJ ZIP: 08102-1658 BUSINESS PHONE: 856-955-4001 MAIL ADDRESS: STREET 1: 1 WATER STREET CITY: CAMDEN STATE: NJ ZIP: 08102-1658 8-K 1 awk-20240828.htm FORM 8-K - TOWAMENCIN ASSET PURCHASE AGREEMENT TERMINATION PROCESS awk-20240828 August 28, 2024 0001410636 false 0001410636 2024-08-28 2024-08-28 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 28, 2024 American Water Works Company, Inc. (Exact name of registrant as specified in its charter) Commission File Number: 001-34028 Delaware 51-0063696 (State or other jurisdiction of incorporation) (IRS Employer Identification No.) 1 Water Street Camden , NJ 08102-1658 (Address of principal executive offices, including zip code) ( 856 ) 955-4001 (Registrant’s telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common stock, par value $0.01 per share AWK New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Item 8.01.    Other Events. Commencement of Process to Terminate Acquisition of Towamencin Township’s Wastewater System On August 28, 2024, Pennsylvania-American Water Company (“Pennsylvania American Water”), a subsidiary of American Water Works Company, Inc. (the “Company”), issued a press release announcing that Pennsylvania American Water and Towamencin Township (the “Township”) will begin the process to terminate that certain Asset Purchase Agreement, dated June 14, 2022, as amended on March 23, 2023 (the “Asset Purchase Agreement”), by and among Pennsylvania American Water, the Towamencin Municipal Authority (the “Authority”) and the Township. As previously reported, effective March 24, 2023, Pennsylvania American Water acquired by assignment all of the rights, and assumed all of the obligations, of NextEra Water Pennsylvania, LLC (“NEWPA”), an in