1 Company, 2 AdWords Accounts, 3 domains, different markets, similar products, help?

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I am managing 2 AdWords accounts via the My Client Center.
They are two separate accounts, but owned by the same company. The accounts
are different business models within the same industry. Let's say Widgets
for lack of a better term.

Account 1 sells Widgets made by many different manufacturers and is more or
less region specific (West coast, and southwestern US). This account has
been running full steam for a little over a year now and has a dedicated
website that is very successful both in PPC and organic search. The actual
brick and mortar is on the west coast.

Account 2 sells Widgets made by only one manufacturer called Blue Widgets
and is catering to the Midwest and East coast. This website is completely
different from Account 1 in regard to content, look and feel, and the main
product. The Brick and Mortar is in the Midwest and it's a fairly new
business, but running very well so far.

OK, here it comes. Account 1 also sells Blue Widgets, but not in the same
region as Account 2. The company however wants to create a separate website
for marketing Blue Widgets in the South West and West Coast. They no longer
want to advertise Blue Widgets via the domain name in Account 1. They want a
separate domain like they did for the Blue Widgets in the Midwest since that
business is working well. The thinking is a more targeted website needs to
be created to focus on Blue Widgets on the West Coast. Which makes sense,
and I agree with, but I want to make sure it's done correctly in the eyes of
Google.

Would it be wise to start a new campaign in Account 1 using this new domain
to market the Blue Widgets? The Blue Widgets would actually be sold from the
Brick and Mortar on the West Coast location that also sells other widgets,
but there would be a staff for Blue Widgets only. I ask because technically
it's the same company, just a different way to market Blue Widgets and Blue
Widgets only. Or should I open a 3rd AdWords account for this new website.
I'm really trying to understand if the company is walking a fine line with
double serving ads or not. I don't think so since the accounts all target
different parts of the country and/or specific markets. I hope this makes
sense. Any feedback would be appreciated.