PORTLAND, Ore. - NW Natural Water Company, LLC, a subsidiary of Northwest Natural Holding Company (NYSE:NWN), has announced the acquisition of Infrastructure Capital Holdings (ICH), including Puttman Infrastructure assets.
This move will add roughly 4,200 customers across Oregon, Idaho, and California, with an anticipated growth to 19,000 connections. Concurrently, Tom Puttman, the current president of Puttman Infrastructure and ICH, is set to become president of NW Natural Water.
The acquisition signifies NW Natural Water's first foray into the recycled water market and its entry into the California market. It also marks an expansion of the company's utility portfolio and services business. Justin B. Palfreyman, president of NW Natural Holdings, highlighted the strategic expansion into the recycled water market and the potential for further investments in high-growth areas.
David H. Anderson, CEO of NW Natural Holdings, praised Palfreyman for his leadership in growing NW Natural Water into a significant player in the private water company sector. He expressed confidence in Puttman's leadership as the company embarks on its next growth phase, citing Puttman's entrepreneurial spirit and industry reputation.
Puttman expressed enthusiasm about joining NW Natural Water, acknowledging the company's financial strength and commitment to community service. The transaction is slated for completion in the third quarter of 2024, with Puttman joining the company at that time.
NW Natural Holdings, based in Portland, Oregon, has a history spanning over 165 years in the Pacific Northwest. It owns a variety of businesses, including NW Natural Gas Company and NW Natural Renewables Holdings, with a commitment to safety, environmental stewardship, and community engagement.
The press release also included forward-looking statements, cautioning that actual results may differ from those projected due to various uncertainties and risks. These statements are not guarantees of future performance and are subject to change.
This article is based on a press release statement and aims to present the facts of the acquisition and leadership appointment without speculation on the broader industry impact or trends.
InvestingPro Insights
As NW Natural Water Company, a subsidiary of Northwest Natural Holding Company (NYSE:NWN), embarks on a strategic expansion with the acquisition of Infrastructure Capital Holdings and enters the recycled water market, it's worthwhile to consider the current financial metrics and analyst insights provided by InvestingPro.
The company's market capitalization stands at a solid $1.42 billion, reflecting its substantial presence in the utility sector. With a price-to-earnings (P/E) ratio of 16.07 and a slightly higher adjusted P/E ratio for the last twelve months as of Q1 2024 at 16.52, NW Natural Holding Company is valued by the market at a level that suggests investor confidence in its earnings capacity. Additionally, the company's dividend yield is notably high at 5.22%, which is particularly attractive to income-focused investors.
InvestingPro Tips highlight that NW Natural Holding Company carries a significant debt burden, which is a vital consideration for investors gauging the risk profile of the company. However, the company also boasts a long history of dividend reliability, having raised its dividend for 53 consecutive years and maintained dividend payments for 54 consecutive years. This track record underscores the company's commitment to returning value to shareholders and suggests a stable financial position that supports ongoing dividend payments.
Investors interested in deeper analysis and additional insights can find more InvestingPro Tips for NW Natural Holding Company at https://www.investing.com/pro/NWN. There are currently 9 additional tips available, which can provide a more nuanced understanding of the company's financial health and future prospects.
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