American Water Works To Acquire Pivotal Home Solutions For $365 Mln In Cash

(RTTNews) - American Water Works Company, Inc. (AWK) said it agreed to acquire Pivotal Home Solutions from Southern Company Gas, a subsidiary of Southern Company, for approximately $365 million in cash, including estimated working capital.

The closing of the acquisition is subject to certain conditions, including obtaining necessary regulatory approvals and consents, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions and deliveries.

Upon completion of the acquisition, Pivotal Home Solutions will be part of American Water's home warranty businesses, while maintaining its current name and main operations in Naperville, Ill.

American Water anticipates closing the transaction by second quarter 2018.

Separately, American Water Works announced the pricing of a registered underwritten offering of 2.32 million shares of its common stock at a price per share of $80.50 in connection with the forward sale agreements.

The offering is expected to close on April 16, 2018.