Benzinga | Jun 28, 2021 04:38PM EDT

SJW Group Reports Its Texas Subsidiary, SJWTX, Planning To Acquire Kendall West Utility Operating In Kendall County, Bandera East Utility In Bandera, Medina Counties, Texas

SJW Group (NYSE:SJW) today announced that its Texas subsidiary, SJWTX Inc., which does business as Canyon Lake Water Service Company, is planning to acquire the Kendall West Utility operating in Kendall County and the Bandera East Utility in Bandera and Medina Counties, Texas. The companies have filed applications with the Public Utilities Commission of Texas ("PUCT") for approval of the transactions.

Eric W. Thornburg, chairman, president and CEO of SJW Group, stated, "We are eager to serve the customers of Kendall West and Bandera East Utilities as part of our Canyon Lake Water Service Company. This transaction, if approved by the PUCT, will benefit all of our customers through increased scale and greater resources. We look forward to delivering exceptional drinking water and wastewater services to them in the future."

Thomas Hodge, president of SJWTX, stated, "The combination of Kendall West and Bandera East Utilities with SJWTX brings together two fast growing utilities in adjacent counties which both rely on water from Canyon Lake and the Trinity Aquifer. The Kendall West and Bandera East Utilities provide water to approximately 4,000 people through over 1,300 service connections in a service area approximately 20 square miles. The merger will increase efficiency of operations and bring SJWTX's experience of managing and supporting rapid growth to Kendall, Bandera and Medina Counties."

Included with Kendall West are wastewater services that recycle water for landscape irrigation at a local golf course, stretching the use of scarce water resources in this drought prone area. A combination of groundwater wells and surface water from Canyon Lake provide Kendall West Utility and Bandera East Utility with their water supply. The transaction will not affect the rates or service for customers of Canyon Lake Water Service Company, Kendall West Water System, nor Bandera East Water System.

Combining Kendall West and Bandera East Water Systems with SJWTX will make for a larger, more efficient water utility with access to capital and management resources needed for this fast growing area. After PUCT review and public comment, the acquisition is expected to be final by the end of 2021. If approved by the PUCT, this would become the 14th acquisition by SJWTX since 2006 and expand its footprint in Texas across seven counties in total. Over the past 15 years, the company has nearly tripled in size from 6,500 to 21,500 connections and now serves approximately 65,000 people. With the addition of Kendall West, SJWTX will serve three of the top ten fastest growing counties in the United States, according to the U.S. Census Bureau.