#United States #Infrastructure #Energy Services #Huntington #FAMCO

Energy Services of America Acquires FAMCO, Inc.

On October 1, 2026, Energy Services of America Corporation announced its significant acquisition of FAMCO, Inc., a prominent utility contractor based in West Virginia. This strategic move is aimed at enhancing Energy Services’ operational capabilities in the water and sewer infrastructure sectors. The acquisition is set to be formalized under an Asset Purchase Agreement that has been intricately crafted to not only benefit the company but also to improve local utility services.

Details of the Acquisition

Under the terms of the agreement, FAMCO Acquisition, Inc., a newly created subsidiary of Energy Services, will take over nearly all of FAMCO's operating assets. The base price for this acquisition is set at $6.95 million. Financial arrangements include an initial cash payment of one-third of the purchase price, with an additional half being paid in common stock of Energy Services, aimed to strengthen the company’s financial stability and shareholder value. The remaining fraction of the cost will be held back pending a post-closing adjustment.

This acquisition is expected to close around October 9, 2026, contingent upon necessary approvals and the fulfillment of certain conditions. The integration of FAMCO's assets into Energy Services is viewed as a promising step forward in boosting capabilities to manage and expand infrastructure services in the region.

Why Choose FAMCO?

FAMCO, known for its expertise in the water and sewer utility contracting sector, comes equipped with experienced personnel, advanced equipment, and established customer relationships. This foundation not only provides Energy Services immediate access to a well-functioning operational model but also adds a reputable brand to its portfolio. The management at Energy Services is optimistic that integrating FAMCO will lead to substantial synergies in operations, ultimately providing better services to existing and new clients.

Douglas Reynolds, President of Energy Services, stated, "We are excited to add FAMCO to the Energy Services team. FAMCO brings experienced people, equipment, and customer relationships that complement our existing operations and further strengthen our capabilities in water and utility construction."

Implications for Future Operations

The acquisition reinforces Energy Services' commitment to enhancing its capability to deliver vital infrastructure support in the communities they serve. By incorporating FAMCO into their operations, Energy Services aims to streamline functions, respond more effectively to local utility demands, and expand their portfolio of services.

FAMCO's seasoned workforce will enable Energy Services not only to maintain but potentially augment their service capacity in water and utility construction. This strategic expansion can provide Energy Services a competitive edge in the marketplace, securing their position as a leading service provider in both the mid-Atlantic and Central regions of the United States.

About Energy Services

Established and headquartered in Huntington, West Virginia, Energy Services of America Corporation (NASDAQ: ESOA) is a contractor and service firm operating primarily in various infrastructure sectors such as natural gas, petroleum, water distribution, and chemical industries. The company is committed to maintaining high safety and quality standards, underpinning their operational ethos with a workforce of more than 1,400 employees.

In conclusion, the merger represents a significant milestone for Energy Services and reflects their strategic initiative to bolster their presence and ensure that they offer enhanced services in the vital infrastructure segment of the economy. Investors and stakeholders are keenly observing the developments as the acquisition unfolds. As this new chapter begins, the integration of FAMCO will undoubtedly steer Energy Services towards a path of growth and capability expansion in the competitive landscape of utility providers.