HUNTINGTON, W.Va. - Energy Services of America (OTC:ESOA) Corporation (NASDAQ:ESOA) has entered into an agreement to acquire the assets of Tribute Contracting & Consultants, LLC, an underground utility contractor. The $24 million deal, announced today, includes $22 million in cash and $2 million in common stock, with adjustments for debt and working capital.
Tribute, which has operations in Ohio, Kentucky, and West Virginia, specializes in water and wastewater systems. The acquisition by Energy Services' new subsidiary, Tribute Acquisition Company, is expected to be finalized in early December.
The founders of Tribute, Tom Enyart and Todd Harrah, will continue in their current roles within the new subsidiary. Both expressed enthusiasm about joining Energy Services and the potential for future growth opportunities.
Douglas Reynolds, President of Energy Services, stated that the acquisition aligns with the company's strategy to expand its water distribution capabilities by purchasing familiar companies. Energy Services, headquartered in Huntington, WV, employs over 1,000 workers and serves various industries, including natural gas, petroleum, automotive, chemical, and power sectors.
The company cautions that this press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations. These statements are based on current beliefs and assumptions and involve risks related to general economic conditions, business strategy changes, and the integration of the acquired business.
This acquisition news is based on a press release statement from Energy Services of America Corporation.
In other recent news, Energy Services of America Corp announced the resignation of Mr. Samuel G. Kapourales from his role as a director. The company confirmed that this departure did not stem from any disagreements with the company's management. The reasons for his resignation or any potential replacement were not disclosed.
Furthermore, Energy Services of America has not indicated any immediate operational or strategic changes following Mr. Kapourales's departure. The company's common stock continues to be listed on The Nasdaq Stock Market LLC, and no intentions of altering its financial accounting practices have been expressed in light of this event.
These are the latest developments in the company's operations. As always, investors are encouraged to stay informed about such changes within the company.
InvestingPro Insights
Energy Services of America Corporation's (NASDAQ:ESOA) acquisition of Tribute Contracting & Consultants, LLC aligns well with the company's strong financial performance and growth trajectory. According to InvestingPro data, ESOA has demonstrated impressive revenue growth of 31.56% over the last twelve months as of Q3 2024, with revenues reaching $352.07 million. This acquisition is likely to further boost the company's top-line growth.
The company's profitability is also noteworthy, with a gross profit of $48.43 million and an operating income of $19.81 million in the same period. These figures suggest that ESOA has the financial capacity to integrate and leverage the newly acquired assets effectively.
InvestingPro Tips highlight ESOA's strong market performance, with the stock trading near its 52-week high and showing a remarkable 142.22% price total return over the past year. This positive momentum could be attributed to the company's strategic moves, including this latest acquisition.
It's worth noting that ESOA operates with a moderate level of debt, which is crucial for maintaining financial flexibility during expansion efforts like the Tribute acquisition. Additionally, the company's perfect Piotroski Score of 9 indicates strong overall financial health, suggesting that ESOA is well-positioned to capitalize on growth opportunities in the water distribution sector.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for ESOA, providing deeper insights into the company's financial position and market potential.
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