Energy Services of America (OTC:ESOA) Corporation (NASDAQ:ESOA), a company specializing in water, sewer, pipeline, and power line construction, has finalized the acquisition of assets from Tribute Contracting & Consultants, LLC, an underground utility contractor. The acquisition, which took place on Monday, was previously announced and involved a purchase price of $22.0 million in cash and $2.0 million in Energy Services Common Stock.
Tribute, based in South Point, Ohio, employs approximately 90 construction workers and is known for its work on water and wastewater system installations across Ohio, Kentucky, and West Virginia. The cash portion of the acquisition was financed through a $16.0 million loan from United Bank, West Virginia, with the balance covered by Energy Services' own funds. The company maintains a moderate debt profile with a debt-to-equity ratio of 0.66, suggesting prudent financial management.
As part of the deal, Todd Harrah and Tommy Enyart, key figures at Tribute, will continue their roles within the newly formed subsidiary of Energy Services. Both sellers received $1.0 million in Energy Services stock, equating to 67,386 shares each, as per the terms of the Asset Purchase Agreement dated October 30, 2024.
This strategic move is expected to enhance Energy Services' position in the regional market and expand its operational capabilities, with the integration of Tribute's assets, including customer contracts, employees, and equipment. The transaction is based on an agreement that allows for a working capital adjustment, which is a common practice in such acquisitions.
The information reported is based on a press release statement and is intended to provide investors with clear and concise details regarding the completion of this significant transaction by Energy Services of America Corporation.
In other recent news, Energy Services of America Corporation has announced significant updates in its operations.
The company has reported the initiation of a quarterly cash dividend of $0.03 per common share, reflecting the board's intention to increase the annual cash dividend from last year's total of $0.06 to $0.12. This move is part of the company's commitment to its shareholders.
In addition, Energy Services has acquired Tribute Contracting & Consultants, LLC, an underground utility contractor with operations in Ohio, Kentucky, and West Virginia. The $24 million acquisition, which includes $22 million in cash and $2 million in common stock, aligns with the company's strategy to expand its water distribution capabilities. The founders of Tribute, Tom Enyart and Todd Harrah, will maintain their current roles within the new subsidiary, Tribute Acquisition Company.
Moreover, Energy Services reported the resignation of Mr. Samuel G. Kapourales from his role as a director. The company clarified that his departure did not result from any disagreements with the company's management, and no immediate operational or strategic changes are anticipated following his departure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.