American Water Works Co. Inc. has agreed to acquire Keystone Clearwater Solutions from Rex Energy Corp. The transaction values the company at $130 million.
Keystone, headquartered in Hershey, Pa., is a water service provider offering a range of water related services to the oil and gas industry primarily in the Appalachian region of Pennsylvania, Ohio and West Virginia.
“Keystone Clearwater Solutions provides turnkey water solutions to the shale gas industry in a safe and environmentally responsible manner,” said Susan Story, president and CEO of American Water. “We are excited because Keystone’s offerings are in line with American Water’s core competencies—supplying, transmitting, pumping and storing water and building the infrastructure required to do so. Keystone’s commitment to its customers, its operational focus and its commitment to environmental responsibility and safety are also aligned with American Water’s values and have allowed Keystone to grow into a market leader in the shale gas water services segment in only a few years. We will continue leveraging the expertise of the talented team of Keystone employees who have built this successful organization.
“This acquisition delivers on one of our growth strategies to develop complementary businesses. Coupled with our existing activity in shale, the Keystone acquisition will enhance our ability to provide additional water services solutions to shale development companies."
Upon completion of the acquisition, Keystone will operate as a separate, independent subsidiary of American Water.
“We are excited about this acquisition by American Water,” said Ned Wehler, founder and CEO of Keystone, who will continue to lead the organization. “American Water’s commitment to its customers, safety, the development of its employees and environmental protection is consistent with Keystone’s philosophy. We look forward to a bright future together.”
Source: American Water