American Water to Sell Subsidiaries to EPCOR

American Water Works is to sell its two subsidiaries, which provide water and wastewater services in the US states of Arizona and New Mexico, to a unit of EPCOR Utilities for $470m.

American Water said it will use the funds from the divestment to cut equity and debt financing.

The subsidiaries serve approximately 174,000 customers in Arizona and New Mexico.

The deal, which includes $10m in long-term debt, will be funded with cash and debt, according to EPCOR.