H2O America to Buy Quadvest in $540 Million Asset Deal
Texas Water Company and an affiliate will take Quadvest’s Houston-area systems, more than doubling H2O America’s Texas connections.
H2O America (HTO) said its regulated Texas water and wastewater utility, The Texas Water Company (TWC), and affiliate Texas Water Operation Services, LLC (TWOS), will acquire all the assets of Quadvest, a regulated investor-owned water and wastewater utility in the Houston metro area, in a $540 million asset purchase.
Under the first agreement, TWC will buy regulated systems owned by Quadvest, L.P. for $483.6 million. Under the second, TWOS will buy systems owned by Quadvest Wholesale LLC for $56.4 million. The deal will be financed with privately placed debt and equity infusions from H2O America, in a manner that allows the parent to maintain its balance sheet and current credit ratings. The transaction is not subject to a financing condition.
The acquisition more than doubles H2O America’s water and wastewater connections in Texas, providing greater scale to support continued investment in critical infrastructure and operational excellence for Hill Country and Houston-area communities. Quadvest had over 47,000 active connections and over 89,000 connections under contract and pending development at announcement, with 50 water treatment plants, 27 wastewater treatment plants, and 89 lift stations and underground assets serving approximately 69 developments.
Andrew F. Walters, chair of the H2O America board of directors and chief executive officer, said: “This is a significant milestone in our strategy to build a stronger utility portfolio, with Quadvest’s operations projected to deliver double-digit customer growth over the next several years in some of the country’s fastest-growing counties.” Texas customers would have comprised approximately 17% of H2O America’s total service base as of December 31, 2024, versus approximately 7% on a standalone basis, and are projected to comprise approximately 26% of the service base by 2029. Texas is projected to become the company’s second-largest utility operation by 2028.
The boards of H2O America and TWC unanimously approved the transaction. Closing was originally expected by mid-2026, subject to customary conditions, including Public Utility Commission of Texas approval and the expiration or termination of the Hart-Scott-Rodino waiting period. In late December 2025, TWC received appraised fair market values from three PUCT-appointed appraisers for the Quadvest, L.P. assets; the $483.6 million purchase price will serve as the ratemaking rate base.
As of June 30, 2026, Quadvest’s total active connections stood at 59,800, after growing 10%, or 5,400 connections, in the first six months of 2026. Connections under contract and pending development rose by 11,900 since December 31, 2025, to nearly 99,000. The addition of Quadvest is expected to drive Texas from 8% of its consolidated customer base at year-end 2025 to 26% by 2029.
On July 9, 2026, PUCT staff recommended that the transaction proceed without a public hearing in the pending Sale-Transfer-Merger docket. The statutory deadline for the commission to approve the sale or require a hearing is August 26, 2026. H2O America anticipates closing around the end of the third quarter or early fourth quarter of 2026.