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The basics:

• NJ American Water closes $6.4M Hopewell acquisition
• Utility adds more than 900 water customers
• Company will invest $7M in system upgrades
• PFAS-affected well to be replaced with treated water supply

New Jersey American Water has sealed the deal on another acquisition.

The Camden-based utility announced June 30 that it finalized its agreement to purchase Hopewell Borough‘s water system for $6.4 million.

More than 58% of Hopewell voters approved a November 2025 referendum to sell the borough’s water system to NJ American Water, a company representative told NJBIZ last fall.

The New Jersey Board of Public Utilities approved the municipal consent June 30, allowing the plan to move forward, according to the latest announcement.

The acquisition adds more than 900 water customers TO NJ American Water’s service area. The municipality had been purchasing water from NJ American Water for a portion of the borough’s water supply since 2005.

As part of the agreement, NJ American Water will invest $7 million in infrastructure improvements to the system within the first five years of ownership.

Hopewell Borough Mayor Ryan Kennedy said the sale followed “a thorough and thoughtful process with ample community input.”

“By partnering with New Jersey American Water, we are addressing long-term infrastructure needs today while securing dependable, high-quality service and stable rates for our community,” Kennedy added.

In addition to upgrades such as new service lines, customer meters and fire hydrants, the company will also shut the borough’s one operating well that has elevated PFAS levels, NJ American Water said. The community will receive water through the company’s Canal Road and Raritan Millstone water treatment plants.

“As the community’s water provider, we’ll start by stabilizing rates, making smart, targeted investments to strengthen the system, and working to address PFAS by first transitioning away from the system’s existing well,” said Mark McDonough, president of NJ American Water.

Parent company update

In April, American Water received the first regulatory approval for its proposed merger with Pennsylvania-based Essential Utilities Inc. The green light from the Public Utilities Commission of Ohio followed in May and Virginia State Corporation Commission in June. 

The transaction would create a leading regulated U.S. water and wastewater public utility with a pro forma market capitalization of approximately $40 billion and a combined enterprise value of approximately $63 billion, based on closing stock prices as of Oct. 24, 2025.