ENERGY SERVICES OF AMERICA COMPLETES ACQUISITION
Energy Services of America (Nasdaq: ESOA) has completed the acquisition of Tribute Contracting & Consultants, an underground utility contractor specializing in water and wastewater system installations across Ohio, Kentucky, and West Virginia.
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Rhea-AI Summary
Energy Services of America (Nasdaq: ESOA) has completed the acquisition of Tribute Contracting & Consultants, an underground utility contractor specializing in water and wastewater system installations across Ohio, Kentucky, and West Virginia. The transaction, valued at $24 million, consists of $22 million in cash (subject to debt and working capital adjustments) and $2 million in ESOA common stock. Tribute brings approximately 90 construction workers to Energy Services, strengthening the company's presence in water distribution and wastewater sectors.
Positive
- Strategic acquisition expanding water and wastewater service capabilities
- Addition of 90 skilled construction workers to workforce
- Geographic expansion in Ohio, Kentucky, and West Virginia markets
- Majority cash-based transaction ($22M) indicating strong liquidity position
Negative
- Potential shareholder dilution from $2M stock issuance component
- Assumption of Tribute's debt (unspecified amount)
- Integration costs and risks associated with merging operations
Details
News Market Reaction – ESOA
The recorded move for ESOA in the trading session of this news was +0.91%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
As previously noted, Energy Services purchased substantially all of the assets of Tribute for
Todd Harrah and Tommy Enyart will continue their employment with Energy Services' new subsidiary and commented on the announcement, "We are excited to join forces with Energy Services and look forward to contributing to the company's continued success."
Douglas Reynolds, President, commented on the announcement. "We are excited to add Tribute to the Energy Services team. This acquisition is consistent with our strategy of buying companies that are familiar to us and further enhances our presence in the water distribution and wastewater categories."
About Energy Services
Energy Services of America Corporation (NASDAQ: ESOA), headquartered in
Certain statements contained in the release including, without limitation, the words "believes," "anticipates," "intends," "expects" or words of similar import, constitute "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such factors include, among others, general economic and business conditions, changes in business strategy or development plans, the integration of acquired business and other factors referenced in this release. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
View original content:https://www.prnewswire.com/news-releases/energy-services-of-america-completes-acquisition-302319926.html
SOURCE Energy Services of America Corporation
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