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ENERGY SERVICES OF AMERICA ANNOUNCES ACQUISITION OF TRIBUTE CONTRACTING & CONSULTANTS

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Energy Services of America (NASDAQ: ESOA) has announced 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 $22 million in cash (less assumed debt and working capital adjustments) plus $2 million in ESOA common stock, is expected to close in early December. Tribute's founders, Tom Enyart and Todd Harrah, will continue their roles under the new subsidiary, Tribute Acquisition Company.

Energy Services of America (NASDAQ: ESOA) ha annunciato l'acquisizione di Tribute Contracting & Consultants, un'azienda specializzata in lavori di utilità sotterranea per l'installazione di sistemi idrici e fognari in Ohio, Kentucky e Virginia Occidentale. La transazione, del valore di 22 milioni di dollari in contante (al netto dei debiti assunti e delle rettifiche per capitale circolante) più 2 milioni di dollari in azioni ordinarie di ESOA, è prevista per la chiusura all'inizio di dicembre. I fondatori di Tribute, Tom Enyart e Todd Harrah, continueranno a ricoprire i loro ruoli sotto la nuova sussidiaria, Tribute Acquisition Company.

Energy Services of America (NASDAQ: ESOA) ha anunciado la adquisición de Tribute Contracting & Consultants, una contratista de servicios subterráneos especializada en la instalación de sistemas de agua y aguas residuales en Ohio, Kentucky y Virginia Occidental. La transacción, valorada en 22 millones de dólares en efectivo (menos deudas asumidas y ajustes de capital de trabajo) más 2 millones de dólares en acciones comunes de ESOA, se espera que se cierre a principios de diciembre. Los fundadores de Tribute, Tom Enyart y Todd Harrah, continuarán desempeñando sus roles bajo la nueva subsidiaria, Tribute Acquisition Company.

Energy Services of America (NASDAQ: ESOA)는 오하이오, 켄터키 및 웨스트버지니아 전역의 수도 및 하수도 시스템 설치를 전문으로 하는 지하 유틸리티 계약업체인 Tribute Contracting & Consultants의 인수를 발표했습니다. 이 거래는 2200만 달러의 현금(가정된 부채 및 운영 자본 조정을 뺀 금액)과 200만 달러의 ESOA 보통주를 포함하여 이루어지며, 12월 초에 마감될 것으로 예상됩니다. Tribute의 창립자 Tom Enyart와 Todd Harrah는 새로운 자회사인 Tribute Acquisition Company에서도 계속해서 역할을 수행할 것입니다.

Energy Services of America (NASDAQ: ESOA) a annoncé l'acquisition de Tribute Contracting & Consultants, un entrepreneur en services publics souterrains spécialisé dans l'installation de systèmes d'eau et d'eaux usées dans l'Ohio, le Kentucky et la Virginie-Occidentale. La transaction, d'une valeur de 22 millions de dollars en espèces (hors dettes supposées et ajustements de fonds de roulement) plus 2 millions de dollars en actions ordinaires d'ESOA, devrait être finalisée début décembre. Les fondateurs de Tribute, Tom Enyart et Todd Harrah, continueront à jouer leurs rôles au sein de la nouvelle filiale, Tribute Acquisition Company.

Energy Services of America (NASDAQ: ESOA) hat die Übernahme von Tribute Contracting & Consultants angekündigt, einem Unternehmen für Kunststoffverlegung, das sich auf die Installation von Wasser- und Abwassersystemen in Ohio, Kentucky und West Virginia spezialisiert hat. Die Transaktion, die mit 22 Millionen Dollar in bar (abzüglich der übernommenen Schulden und Anpassungen des working capitals) sowie 2 Millionen Dollar in ESOA-Stammaktien bewertet wird, soll Anfang Dezember abgeschlossen werden. Die Gründer von Tribute, Tom Enyart und Todd Harrah, werden ihre Rollen auch in der neuen Tochtergesellschaft, der Tribute Acquisition Company, weiterhin ausüben.

Positive
  • Strategic expansion into water distribution sector
  • Acquisition of established business with regional presence in three states
  • Retention of key leadership personnel ensuring operational continuity
  • Cash and stock deal structure preserving company's liquidity
Negative
  • Significant cash outlay of $22 million may impact working capital
  • Potential shareholder dilution from $2 million stock issuance

Insights

This $24 million acquisition strategically expands Energy Services of America's footprint in the water utility sector. The deal structure, combining $22 million cash and $2 million in stock, maintains financial flexibility while aligning interests through equity participation. For a company with a $190 million market cap, this represents a significant transaction at about 12.6% of market value.

The acquisition of Tribute, an established player in water and wastewater systems across three states, diversifies ESOA's revenue streams and strengthens its competitive position in the utilities infrastructure sector. The retention of Tribute's founding leadership ensures operational continuity and expertise transfer. This move aligns with infrastructure spending trends and growing demand for water system upgrades across the US.

The water infrastructure market presents substantial growth opportunities, with aging systems requiring upgrades nationwide. Tribute's specialized expertise in water and wastewater installations positions ESOA to capitalize on this expanding market segment. The geographic overlap in Ohio, Kentucky and West Virginia creates operational synergies and strengthens regional market presence.

The acquisition demonstrates ESOA's commitment to strategic growth through familiar, complementary businesses. This approach typically reduces integration risks and accelerates value creation. The water utility sector's defensive characteristics and essential service nature add stability to ESOA's business model, potentially reducing cyclical exposure.

HUNTINGTON, W.Va., Oct. 31, 2024 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced it has entered into an Asset Purchase Agreement with Tribute Contracting & Consultants, LLC ("Tribute"), an underground utility contractor that primarily specializes in water and wastewater system installations in Ohio, Kentucky, and West Virginia.

Under the terms of the agreement, Energy Services' new subsidiary, Tribute Acquisition Company, will purchase substantially all of the assets of Tribute for $22 million in cash, less any assumed debt and working capital adjustments, and $2.0 million of Energy Services' common stock. The Company expects the transaction will close in early December. 

Tribute was formed in 2014 by Tom Enyart and Todd Harrah, who will continue in their roles under the new subsidiary. "We are excited to join forces with Energy Services and look forward to new opportunities in the future," commented Mr. Enyart and Mr. Harrah.

"We are excited to add Tribute to the Energy Services team," Douglas Reynolds, President, commented on the announcement. "This acquisition is consistent with our strategy of buying companies that are familiar to us and further enhances our presence in the water distribution category."

About Energy Services

Energy Services of America Corporation (NASDAQ: ESOA), headquartered in Huntington, WV, is a contractor and service company that operates primarily in the mid-Atlantic and Central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. Energy Services employs 1,000+ employees on a regular basis. The Company's core values are safety, quality, and production.

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.

Cision View original content:https://www.prnewswire.com/news-releases/energy-services-of-america-announces-acquisition-of-tribute-contracting--consultants-302292180.html

SOURCE Energy Services of America Corporation

FAQ

How much is Energy Services of America (ESOA) paying for Tribute Contracting?

Energy Services of America is paying $22 million in cash (less assumed debt and working capital adjustments) plus $2 million in ESOA common stock.

When will ESOA complete the Tribute Contracting acquisition?

The acquisition is expected to close in early December 2024.

What is Tribute Contracting's main business area?

Tribute Contracting specializes in water and wastewater system installations in Ohio, Kentucky, and West Virginia.

Will Tribute's founders remain with the company after ESOA's acquisition?

Yes, founders Tom Enyart and Todd Harrah will continue in their roles under the new subsidiary, Tribute Acquisition Company.

Energy Services of America Corporation

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Engineering & Construction
Water, Sewer, Pipeline, Comm & Power Line Construction
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United States of America
HUNTINGTON