ENERGY SERVICES OF AMERICA COMPLETES ACQUISITION

Rhea-AI Summary

Energy Services of America Corporation (Nasdaq: ESOA) has completed its acquisition of Tri-State Paving & Sealcoating for $7.5 million in cash, a $1.0 million Promissory Note, and $1.0 million in common stock. This strategic acquisition aims to enhance its water distribution services, crucial for future growth. David Corns will remain President of the new subsidiary, emphasizing safety, quality, and customer service as key strengths. The company operates primarily in the mid-Atlantic region, employing over 700 individuals.

Positive

• Strategic acquisition increases capabilities in water distribution services.
• David Corns remains with the company, bringing industry knowledge and experience.

Negative

• None.

HUNTINGTON, WVa., May 5, 2022 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA) has completed the previously announced purchase of Tri-State Paving & Sealcoating, LLC ("Tri-State Paving"), a West Virginia corporation located in Hurricane, West Virginia.

As previously noted, Energy Services paid $7.5 million in cash, acquired a $1.0 million Promissory Note, and issued $1.0 million in Energy Services Common Stock to acquire Tri-State Paving.

David Corns will continue his role as President of Energy Services' new subsidiary and commented on the announcement. "This is the special type of business combination where everyone involved wins.  Our customers, and especially our employees, will all benefit from the additional resources provided by our becoming part of the Energy Services family of companies.  Over the last eighteen years TSP built our reputation around safety, quality, and customer service.  We are a natural fit with Energy Services, and I am excited to see what the future holds for this new alliance."

Douglas Reynolds, President, commented on the announcement.  "We are very excited to announce the completion of this acquisition. Tri-State Paving is a great company and will be an important factor in growing our water distribution services, which is a key strategic initiative for Energy Services."  Reynolds continued "We are also very pleased that David Corns had agreed to stay on with us.  David has a tremendous amount of knowledge and experience in the industry, and we look forward to working with him."

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 700+ 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 effect of the COVID-19 pandemic, 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.

Source:  Energy Services of America Corporation

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SOURCE Energy Services of America Corporation

FAQ

What is the acquisition value of Tri-State Paving by Energy Services of America?

Energy Services of America acquired Tri-State Paving for $7.5 million in cash, along with a $1.0 million Promissory Note and $1.0 million in common stock.

When was the acquisition of Tri-State Paving completed by ESOA?

The acquisition of Tri-State Paving was completed on May 5, 2022.

How will the acquisition impact Energy Services of America (ESOA)?

The acquisition is expected to enhance ESOA's water distribution services, which is a key strategic initiative for the company.

Who will lead Tri-State Paving after the acquisition?

David Corns will continue to lead Tri-State Paving as its President after the acquisition.