Maverick Water
PE-OWNED
Acquired by Apollo Global
What PE Will Likely Do
Water main replacement and repair schedules will be extended from proactive 20-30 year cycles to reactive 'fail-first' approaches, leading to more frequent boil water notices and service interruptions for customers
Pressure testing and leak detection frequency will be reduced by 40-60%, causing undetected leaks to waste millions of gallons and potentially allow contamination entry points
Treatment plant chemical dosing systems will shift from premium coagulants and corrosion inhibitors to lower-cost alternatives, potentially affecting water taste, color, and pipe longevity in customer homes
Emergency response crews will be consolidated from 24/7 dedicated local teams to on-call regional pools, extending outage restoration times from hours to potentially 1-3 days
Smart meter and infrastructure monitoring investments will be frozen or reversed to manual read systems, eliminating leak alerts and usage transparency for customers
Expected Timeline
“0 to 6 months months”
Apollo announces 'strategic partnership' with Maverick Water emphasizing 'operational excellence' and 'sustainable infrastructure investment'; senior engineering staff receive retention bonuses with 2-3 year cliffs; no immediate visible changes to service
“6 to 12 months months”
First 'efficiency program' eliminates 25-30% of field maintenance crews through attrition and early retirement packages; response times to main breaks begin creeping upward; customer billing inquiries routed to centralized call center; first rate case filed in regulated jurisdictions
“12 to 24 months months”
Noticeable increase in water main breaks and boil water advisories as deferred maintenance backlog hits critical mass; treatment plant chemical costs cut 20% with visible changes in water clarity/taste complaints; smart meter rollout halted or reversed; fire departments report hydrant pressure issues
“24 to 48 months months”
Regulatory scrutiny intensifies with consent decrees for Clean Water Act violations; emergency response times average 8-12 hours vs. industry 2-4 hours; major capital projects (treatment plant upgrades, storage tanks) delayed or cancelled; bond ratings downgraded as leverage ratios deteriorate; rumors of strategic alternatives or restructuring
“48 to 60 months months”
Potential outcomes: (a) sale to utility consortium or municipal buyer at distressed price, (b) Chapter 11 restructuring with debt-for-equity swap leaving Apollo with reduced stake, (c) continued zombie operation with critical infrastructure failures requiring state/federal intervention
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Install whole-house water filtration system within 12 months, as treatment quality degradation is highly probable
Document baseline water pressure at multiple fixtures now; pressure drops indicate main leaks or pump station maintenance cuts
Request and archive current water quality reports (CCR) to compare against future reports for reduced testing scope
Join or form local water customer advocacy group before rate case proceedings begin
Verify homeowner's insurance covers water damage from main breaks, as frequency will likely increase
Alternatives
Look for family-owned or employee-owned businesses