$6.95 Million Acquisition Agreement Expands Energy Services’ Water Business
Key Facts
Energy Services of America announced on October 1, 2026, an agreement to purchase most of FAMCO’s operating assets through its subsidiary FAMCO Acquisition, Inc. The agreement set a base price of $6.95 million, subject to the adjustments and conditions set out in it. FAMCO operates as a utility contractor in West Virginia, focusing on water and wastewater projects. Energy Services said the target company’s assets include an experienced workforce, an equipment fleet, customer relationships and a contract portfolio. The deal adds these resources to the company’s water and utility construction business, according to Chief Executive Douglas Reynolds’s description of the agreement.
The agreement does not provide for payment of the price entirely in cash: three-eighths is payable in cash at closing, half in Energy Services shares after closing, and the remaining eighth is reserved for subsequent settlement. Part of the consideration is therefore tied to the company’s shares, while payment of the reserved portion is determined under the settlement mechanism set out in the agreement. The $6.95 million price is a base price and is not necessarily the final amount after adjustments and conditions are applied. This split provides a clearer picture of the consideration structure the company announced when it signed the agreement. The statement on completion of the acquisition cited in the summary could not be verified, so this report does not confirm that the deal closed or provide details of its execution.
Reynolds described FAMCO’s resources as complementary to the company’s existing operations and said, "FAMCO’s experienced personnel, equipment and customer relationships complement our existing operations." The company links this addition to its water and utility construction capabilities, while FAMCO focuses on water and wastewater in West Virginia. Energy Services said it regularly employs more than 1,400 people, the workforce figure the company reported for its operations. The agreement announcement does not specify FAMCO’s headcount or how many of its employees would be added to that total. Nor does it establish that the target company’s assets have already been integrated into the buyer’s operations.
The agreement follows Energy Services’ announcement of revenue of $130.0 million in the third fiscal quarter of 2026, up 25.5% year over year, compared with revenue of $103.6 million in the corresponding period. The figures put the deal in the context of a company that recorded revenue growth during that quarter, but do not separate the expected acquisition’s impact from its operating results. The company previously announced on December 2, 2024, that it had completed the purchase of Tribute, which had about 90 construction workers. Reynolds said at the time that the deal aligned with a strategy of buying companies it knew and strengthened its presence in water and wastewater distribution. The Tribute deal provides background on an earlier focus on these categories, but does not by itself establish the outcome or financial impact of the FAMCO deal.
When it announced the FAMCO agreement on October 1, Energy Services shares fell 5% in after-hours trading, according to Investing.com. On October 22, the company’s shares, listed under the ticker ESOA, closed at $9.14, according to EL7 data. Verified data on the stock’s trading range that day are not available here. Energy Services said when it signed the agreement that it expected to complete the deal on or around October 9, subject to the satisfaction or waiver of closing conditions. That was an expected date announced on October 1; it does not by itself confirm that the deal closed on that date or later.