Announcement
Energy Services of America Corp (NASDAQ: ESOA) disclosed that it has entered into an Asset Purchase Agreement to acquire substantially all operating assets of FAMCO, Inc., a West Virginia utility contractor focused on water and sewer infrastructure. The base purchase price is $6.95 million, subject to adjustments.
Deal Structure
Under the agreement, Energy Services’ newly formed subsidiary, FAMCO Acquisition, Inc., will pay three‑eighths of the purchase price in cash at closing, one‑half in Energy Services common stock to be issued after closing, and the remaining one‑eighth will be retained pending a post‑closing true‑up. The transaction is anticipated to close on or about October 9, 2026, subject to satisfaction or waiver of applicable closing conditions.
Strategic Rationale
FAMCO operates with an established workforce, equipment fleet, customer relationships and a contract backlog in water and sewer infrastructure. The acquisition is expected to complement Energy Services’ existing water and utility construction operations.
Management Comment
"We are excited to add FAMCO to the Energy Services team," said Douglas Reynolds, President, noting that FAMCO’s experienced people, equipment and customer relationships will further strengthen the company’s capabilities in water and utility construction.
Company Overview
Energy Services of America is headquartered in Huntington, West Virginia, and operates primarily in the mid‑Atlantic and Central United States. It provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries, employing over 1,400 people.
Market Reaction
Following the announcement, ESOA shares dropped approximately 5% in after‑hours trading on Thursday.