Energy Services of America Corp Announces Acquisition of FAMCO, Shares Drop 5%
Energy Services of America Corp (NASDAQ: ESOA) saw a 5% decline in after-hours trading on Thursday following its announcement regarding the acquisition of FAMCO, Inc., a utility contractor based in West Virginia.
The company has entered into an Asset Purchase Agreement to acquire nearly all operating assets of FAMCO, primarily focusing on water and sewer infrastructure. The base purchase price for this acquisition is set at $6.95 million, subject to adjustments.
Deal Structure
The agreement entails:
- Cash Payment: Three-eighths of the purchase price payable at closing.
- Stock Payment: Half of the payment will be made in Energy Services common stock issued post-closing.
- Withholding: One-eighth of the purchase price will be withheld pending a post-closing true-up.
The transaction is anticipated to finalize on or about October 9, 2026, assuming all closing conditions are met or waived.
Background on FAMCO
FAMCO is an established contractor in West Virginia, boasting a skilled workforce, a robust equipment fleet, and significant customer relationships within the water and sewer infrastructure sector. The acquisition is expected to enhance Energy Services’ existing operations in water and utility construction.
Douglas Reynolds, President of Energy Services, expressed enthusiasm about the acquisition, highlighting the value FAMCO brings to the team through its experienced personnel and established customer relationships.
Company Overview
Headquartered in Huntington, West Virginia, Energy Services of America is active primarily in the mid-Atlantic and Central U.S. regions. The company services a variety of sectors including natural gas, petroleum, and water distribution, employing over 1,400 individuals.
For further details, check the full article here.
