Energy Services of America Corporation (the "Company" or "Energy Services") 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."
