American Water has agreed to acquire Shorelands Water Company, a privately owned and operated water utility located in Hazlet, New Jersey.

The companies did not disclose the financial details of the agreement, which is subject to review and approval from the New Jersey Board of Public Utilities.

Founded in 1926, Shorelands Water was initially supplied water for summer residents of West Keansburg.

From 1957 onwards, the company has grown to provide service to Bayshore communities of Hazlet, Holmdel, Union Beach, Keyport and Aberdeen residents.

The company provides water services to more than 11,000 customer accounts in Monmouth County, New Jersey. Every year, it delivers about two billion gallons of water to its customers.

Upon completion, the acquisition will continue the expansion of New Jersey American Water's operations.

New Jersey American Water delivers water and/or wastewater services to nearly 2.7 million people.

New Jersey American Water president Bill Varley said: "This important acquisition provides a direct link with our water system serving the community of Union Beach, enhancing supply to the northeastern sections of Monmouth County that we serve.

“The strength of the Shorelands system will help New Jersey American Water achieve a goal of increased reliability for customers without the need for additional projects that were being evaluated."

Earlier this year, American Water acquired Environmental Disposal Corporation, a company operating in the Bernards and Bedminster areas.