The second quarter of 2025 marks the lowest deal flow since at least 2015, with just 19 utility acquisitions approved. Acquisition activity remains muted in even the historically busiest M&A hotspots such as Texas, which saw only three deals approved in Q2. Compounding the national slowdown is the steady uptick in average regulatory approval times, which has increased to 275 days in the first half of 2025—nearly two months longer than in 2020. However, the deal pipeline remains robust with 121 announced and pending transactions—a 23.5% increase year-over-year—suggesting pent-up activity may materialize in quarters to come.
Amid subdued activity, US$955 million in investor-owned utilities deal flow stands out. Unitil Corporation marked its water sector debut with a pending US$100 million purchase of the Aquarion Water Company’s assets in New Hampshire and Massachusetts. Meanwhile, Nexus Water Group announced the divestment of 60 drinking water and wastewater systems serving 46,600 connections in eight states to American Water Works Company for US$315 million. In early Q3, H2O America advanced the trend with its agreement to acquire Quadvest LP of Texas, with regulated systems accounting for US$483.6 million of the total US$540.0 million purchase price. These private-to-private transactions underscore how investor-owned utilities are finding more efficient entry points into new markets and in building scale.
This Quarterly Review highlights key trends, transactions, and competitive shifts in the U.S. private water market. Bluefield’s team of water experts tracks mergers and acquisitions, service contract awards, and federal, state, and local policy developments on an ongoing basis to provide the most reliable and up-to-date insights for clients addressing opportunities in water
