Company: AWK
Filing Date: 2025-10-27
Form Type: 425
Source: 0001193125-25-250649
Chunk: 175

Company: American Water Works Company, Inc.
Filing Date: 2025-10-27
Form: 425
Chunk 175
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 Maintain 7-9%Long-term EPS and DPS Growth Targets Combined Operations to Provide Greater Long-Term Growth Opportunities for Employees Companies to Host Joint Conference Call Today at 8:30 a.m. ET CAMDEN, N.J. and BRYN MAWR, Pa.– Oct. 27, 2025– American Water Works Company, Inc. (NYSE: AWK) (“American Water”) and Essential Utilities, Inc. (NYSE: WTRG) (“Essential”) today announced that each company’s board of directors has unanimously approved a definitive agreement to combine in an all-stock, tax-freemerger as 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 October 24, 2025. American Water President and Chief Executive Officer, John C. Griffith said, “This combination brings together two industry leaders united by our shared mission to provide safe, clean, reliable and affordable water and wastewater services to our customers. By joining forces with Essential, the combined company’s enhanced scale and operational efficiency will support continued investment in our critical infrastructure, enabling us to continue providing superior customer service at affordable rates. We look forward to bringing together the talented teams of both companies to help solve the many water and wastewater challenges across the country and expand our customer base.” Essential Chairman and Chief Executive Officer, Christopher H. Franklin said, “Throughout Essential’s nearly 140-yearhistory, we have consistently led with purpose to shape a future rooted in sustainability, innovation, resilience and best-in-classservice for our customers. We are confident that the combined company will build upon our longstanding track record of delivering safe and reliable services and be better positioned to solve today’s challenges while creating a sustainable future. Together, we will have expertise, financial strength and regulatory credibility to continuously improve our infrastructure and meet the evolving needs of our customers. American Water and Essential will continue to enable our communities to thrive.”

Under the terms of the agreement, Essential shareholders will receive 0.305 shares of American Water for each share of Essential they own at the closing of the transaction. This exchange ratio implies a premium of approximately 10% to Essential shareholders based on the average of the daily volume weighted average price of each company’s common stock over the 60-trading-dayperiod ending October 24, 2025. Upon completion of the merger, American Water shareholders will own approximately 69% and Essential shareholders will own approximately