American Energy Signs Agreement to Acquire Second Appalachian Basin Energy Services Company
American Energy Partners, Inc. (PINK: AEPT) has announced an acquisition of a privately held energy services company in the Appalachian Basin, expected to enhance annualized revenue by $6 million to over $12 million in 2022. The deal will increase operating income by $2 million and expand the workforce to over 100 employees. The consideration will include cash, debt assumption, and stock, resulting in less than 1% dilution for shareholders. The acquisition is projected to close in January 2022 and includes potential contingent payments based on EBITDA growth targets.
- Anticipated revenue increase of $6 million to over $12 million for 2022.
- Projected operating income of $2 million post-acquisition.
- Workforce expansion to over 100 employees enhances operational capacity.
- Less than 1% dilution for current shareholders mitigates financial strain.
- Contingent consideration linked to EBITDA growth targets introduces performance risk.
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ALLENTOWN, PA , Sept. 20, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire – American Energy Partners, Inc. (“American Energy”) (PINK: AEPT), a diversified energy company, is pleased to announce it has agreed to acquire (the “Acquisition”) a second privately held energy services company (“Company”) operating in the Appalachian Basin. The Company focuses on providing facility maintenance, transportation, logistics and environmental services to the energy and industrial sectors.
The Acquisition is anticipated to increase American Energy’s 2022 annualized revenue by six (6) million dollars to over twelve (12) million dollars with forecasted operating income of two (2) million dollars. The acquisition would increase American Energy’s workforce to over 100 employees.
Total consideration for the Acquisition will be funded through a combination of cash, assumption of debt and common stock with less than one percent dilution to current shareholders. American Energy is to pay potential contingent consideration based on the achievement of specific EBITDA growth targets of the Company over the next three years.
American Energy’s CEO Brad Domitrovitsch stated, “We are extremely pleased with how fast this deal evolved and the overlap it has with our current operations, thus further diversifying our portfolio of companies and growing our revenue base to bring shareholder value. It is truly an exciting time to be a part of the growth story at American Energy. Over time we have built an incredible team and none of this could have been possible without such strong leadership.”
The transaction is expected to close the first week of January 2022, subject to customary closing conditions.
American Energy Partners, Inc. (AEPT)
American Energy Partners, Inc. is a diversified energy company. Through its various subsidiaries, the Company engages in water treatment and distribution, oil and natural gas production, geotechnical consulting services, and energy education.
For additional information, visit: American Energy Partners, Inc.
Safe Harbor
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of AEPT, statements relating to goals, plans and projections regarding AEPT’s financial position and business strategy. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. AEPT cautions readers not to place undue reliance on such statements. AEPT does not undertake, and AEPT specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from AEPT’s expectations and estimates.
Company Contact:
Contact@americanenergy-inc.com
FAQ
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