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SJW Group And Connecticut Water Services, Inc. to Combine in All-Stock Transaction to Create Leading Water Utility Company

Combined Company to be 3rd Largest Investor-Owned Water and Wastewater Utility in the United States; Multi-State Presence with Corporate Headquarters in San Jose, CA and New England Headquarters in Clinton, CT

New Company Positioned to Drive Growth, Serve Customers and Create Opportunities for Employees as a Result of Increased Scale and Geographic Diversity, Combined Operating Expertise and Enhanced Financial Strength

Transaction Expected to Provide Dividend Growth and Greater Earnings; Expected to be Accretive to Both Companies’ EPS in First Fiscal Year Post-Closing, Increasing to Mid-to-High Single Digit Percentage Accretion Over the Next Couple of Years

Combined Company to Drive Customer Service and Maintain Commitment to Environment

Companies to Host Conference Call This Morning at 8:30 a.m. ET

San Jose, CA and Clinton, CT – March 15, 2018 – SJW Group (NYSE: SJW) and Connecticut Water Service, Inc. (NASDAQ: CTWS) today announced that both companies’ boards of directors have unanimously approved a definitive agreement to combine through a merger of equals to create the 3 rd largest investor-owned water and wastewater utility in the United States, based on pro forma enterprise value and combined rate base.

The combined company will have a strong multi-state presence with high-quality and well-run operations, and constructive regulatory relationships in California, Connecticut, Maine and Texas. It will serve more than 1.5 million people with over 700 employees. In addition to expanding its market presence, the increased scale and more diverse geographic footprint of the new organization provide the opportunity for investments in service and reliability that can enhance value for shareholders as well as for customers and communities. The combined company would have had operating revenue of approximately $496 million and recurring net income of $74 million based on a 2017 pro forma basis.

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