H2O America Nears $540 Million Texas Water Deal

(Bloomberg) -- H2O America is in advanced talks to buy the assets of rival water and wastewater utility Quadvest in a transaction that would boost its presence in the fast-growing Texas market, people familiar with the matter said. 

San Jose-based H2O is set to pay about $540 million for the assets, which are to be acquired through its Texas Water Co. and Texas Water Operation Services affiliates, according to the people. 

A deal could be announced as soon as Tuesday, the people said, asking not to be identified discussing confidential information. 

Representatives for H2O and Quadvest couldn’t immediately be reached for comment. 

Shares in H2O fell as much as 1.5% in New York trading on Monday. The company has a market value of about $1.8 billion. 

Companies in the heavily fragmented water utility space are consolidating as they seek scale to help fund the massive amount of investment needed to overhaul aging infrastructure. The value of water utility deals announced in 2025 has risen more than 20% to $6.5 billion, data compiled by Bloomberg show. Transactions include Eversource Energy’s agreement to sell Aquarion Water Co. to Aquarion Water Authority for $2.4 billion including debt.

Quadvest is one of the largest water and wastewater utilities in Texas, with more than 50 water and 27 wastewater treatment plants. Its assets would accelerate H2O’s expansion from San Antonio and Austin into the Greater Houston area. 

H2O operates other water utilities in Connecticut, Maine and California. The company was known as SJW Group before rebranding in May.

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