Allentown-based American Energy Partners, a diversified energy company, recently agreed to purchase an unnamed privately held energy services company operating in the Appalachian Basin for an undisclosed amount.
The company will fund the purchase through a combination of cash, assumption of debt and common stock with less than one percent dilution to current shareholders. The company also will pay potential contingent consideration based on the achievement of specific Earnings Before Interest, Taxes, Depreciation, and Amortization growth targets over the next three years.
“We are extremely pleased with how fast this deal evolved and the overlap it has with our current operations, thus further diversifying our portfolio of companies and growing our revenue base to bring shareholder value,” Brad Domitrovitsch, American Energy Partners CEO, said. “It is truly an exciting time to be a part of the growth story at American Energy. Over time we have built an incredible team and none of this could have been possible without such strong leadership.”
American Energy Partners expects the purchase will increase its annualized revenue for 2022 by between $6 million to more than $12 million. Operating income is forecasted to be $2 million. The workforce will increase to more than 100 employees.
The deal is expected to close in January.