Apax Partners’ $1.275 Billion Acquisition of American Water’s Homeowner Services Group

Schulte and Shearman & Sterling advised American Water Works Company on the deal, while Simpson Thacher represented funds advised by Apax Partners.

American Water Works Company Inc., the largest publicly traded U.S. water and wastewater utility company, executed the sale of its Homeowner Services Group to Apax Partners LLP, a leading global private equity advisory firm, in a deal valued at $1.275 billion.

Homeowner Services Group provides various warranty protection programs and other home services to residential customers across the country. This business currently has nearly 3 million customer contracts across 43 states and Washington, DC.

Apax Partners LLP is a leading global private equity advisory firm. For nearly 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $60 billion.

With a history dating back to 1886, American Water (NYSE:AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 7,000 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 46 states. 

The Schulte team advising American Water was led by M&A and Securities partner Brian Miner (Picture). The team also included M&A and Securities partner Ian Levin, special counsel Adam Gartner and Gregory Kinzelman, associate Jamie Freedman and law clerk Vera Lee; tax associates Hannah Hollingsworth and Joseph Reich; insurance special counsel Theodore Keyes; and intellectual property, sourcing & technology partner Edward Sadtler and associate Jennifer Gordon.

The Simpson Thacher team included Ryerson Symons, Ben Schaye, Sung Jin, Malik Ladhani, Jule Walsh and Eva Du (M&A); Lori Lesser, Melanie Jolson and Bobbie Burrows (Intellectual Property); Brian Steinhardt and Adam Moss (Banking and Credit); Sophie Staples, Drew Purcell, Edward Grais and Scott Grundei (Tax); Andrew Blau, Linda Barrett and Guanxiong Xu (Executive Compensation and Employee Benefits); Krista McManus (Real Estate); Michael Isby (Environmental); Steven DeLott (Insurance); and Sara Razi, Kelly Karapetyan and Nicholas Ingros (Antitrust).

The Shearman & Sterling team included Scott Petepiece, Gus Atiyah, Grace Jamgochian, Larry Crouch, Alan S. Goudiss, Daniel H.R. Laguardia, Doreen E. Lilienfeld, Ned S. Schodek, Philip Urofsky, Reade Ryan, Matthew Modell, Richard Gagnon, William Yaro, Michael Steinberg, Nathan Wood, Yiting Du, Magnus Wieslander, Matthew Weston, and Austin James.

Involved fees earner: Jamie Freedman – Schulte Roth & Zabel; Adam Gartner – Schulte Roth & Zabel; Jennifer Gordon – Schulte Roth & Zabel; Hannah Hollingsworth – Schulte Roth & Zabel; Theodore Keyes – Schulte Roth & Zabel; Gregory Kinzelman – Schulte Roth & Zabel; Ian Levin – Schulte Roth & Zabel; Brian Miner – Schulte Roth & Zabel; Joseph Reich – Schulte Roth & Zabel; Edward Sadtler – Schulte Roth & Zabel; Gus Atiyah – Shearman & Sterling; Larry Crouch – Shearman & Sterling; Yiting Du – Shearman & Sterling; Richard Gagnon – Shearman & Sterling; Alan Goudiss – Shearman & Sterling; Grace Jamgochian – Shearman & Sterling; Daniel Laguardia – Shearman & Sterling; Doreen Lilienfeld – Shearman & Sterling; Matthew Modell – Shearman & Sterling; Scott Petepiece – Shearman & Sterling; Reade Ryan – Shearman & Sterling; Ned Schodek – Shearman & Sterling; Michael Steinberg – Shearman & Sterling; Philip Urofsky – Shearman & Sterling; Matthew Weston – Shearman & Sterling; Magnus Wieslander – Shearman & Sterling; Nathan Wood – Shearman & Sterling; William Yaro – Shearman & Sterling; Andrew Blau – Simpson Thacher & Bartlett; Bobbie Burrows – Simpson Thacher & Bartlett; Steven DeLott – Simpson Thacher & Bartlett; Yuwei Du – Simpson Thacher & Bartlett; Edward Grais – Simpson Thacher & Bartlett; Scott Grundei – Simpson Thacher & Bartlett; Nicholas Ingros – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Sung Jin – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Malik Ladhani – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Adam Moss – Simpson Thacher & Bartlett; Andrew Purcell – Simpson Thacher & Bartlett; Sara Razi – Simpson Thacher & Bartlett; Benjamin Schaye – Simpson Thacher & Bartlett; Sophie Staples – Simpson Thacher & Bartlett; Brian Steinhardt – Simpson Thacher & Bartlett; Ryerson Symons – Simpson Thacher & Bartlett; Jule Walsh – Simpson Thacher & Bartlett; Guanxiong Xu – Simpson Thacher & Bartlett; Linda Barrett – Skadden Arps Slate Meager & Flom;

Law Firms: Schulte Roth & Zabel; Shearman & Sterling; Simpson Thacher & Bartlett; Skadden Arps Slate Meager & Flom;

Clients: American Water Works Company Inc; Apax Partners;