Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 88

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 88
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 brokers for certain costs incurred in forwarding proxy materials to beneficial owners. Essential has retained MacKenzie Partners, Inc. in connection with this solicitation, at an
anticipated cost of $17,500, plus $1,500 for any adjournment or postponement of the Essential special meeting. Essential has also agreed to pay the cost of any additional services provided at customary rates, and to reimburse the reasonable and
customary expenses of MacKenzie Partners, Inc. incurred in connection with the solicitation. In addition to the use of the mails, Essential’s officers, directors and employees may solicit proxies personally, by telephone, facsimile or other
electronic communication, or via the Internet. These individuals will not receive any additional compensation for these activities. Intermediaries have been requested to forward proxy solicitation materials to their customers or other beneficial
holders and will be reimbursed for their reasonable out-of-pocket expenses.

56

THE MERGER

The following is a description of the material aspects of the merger and the material terms of the merger agreement. While American Water and Essential
believe that the following description includes all of the material terms of the merger and the merger agreement, the description may not contain all of the information that is important to you. American Water and Essential encourage you to
carefully read this entire joint proxy statement/prospectus, including the merger agreement attached as Annex A, which constitutes a part of this joint proxy statement/prospectus, for a more complete understanding of the merger and the merger
agreement.

Terms of the Merger

In the merger, Merger Sub will merge with and into Essential with Essential surviving the merger as a wholly owned subsidiary of American Water. Essential
shareholders will receive the merger consideration described in “The Merger Agreement—Merger Consideration Received by Essential Shareholders ” beginning on page 121.

Background of the Merger

As
neighboring water and wastewater utilities, American Water and Essential are well known to each other. From time to time, members of American Water management have met with members of Essential management to discuss their industry and their
respective businesses. At various points in the past few years, American Water and Essential have had discussions regarding the potential for a strategic transaction between American Water and Essential. These discussions did not advance beyond
preliminary, exploratory conversations.

As part of its regular ongoing strategic review, the American Water board and American Water management
periodically consider opportunities to evaluate the future of American Water and enhance stakeholder objectives,