PowerSecure Acquires ESCO Energy Services Company, ~$1.8M In Cash And Promissory Notes, ESCO May Receive Earn-Out Pmts Until 2018

PowerSecure International, Inc.

today announced that it has acquired ESCO Energy Services, Inc. (ESCO), a private company based in Lenox, Massachusetts that provides lighting retrofit solutions which deliver energy savings for large energy services companies and commercial and industrial, institutional, utility and municipal customers across North America. The company provides full turnkey energy efficiency services including energy audits, engineering and design, materials procurement, project management, implementation and verification. Since its inception in 1992, ESCO has delivered more than 300 million square feet of lighting upgrades. PowerSecure paid approximately $1.8 million in total consideration, including cash and promissory notes. ESCO could also receive earn-out payments through 2018 if it exceeds certain contracted sales targets that would reflect meaningful growth. PowerSecure anticipates that the transaction will be accretive to EPS, beginning in 2016. "The outstanding ESCO team and capabilities we have acquired significantly expand the business development capacity of our energy efficiency services (EES) group. When combined with the proven operational foundation established by our EES team, we believe we are well positioned to capitalize on the growth we anticipate in the marketplace," said Sidney Hinton, chief executive officer of PowerSecure. "ESCO's strength in New England, and their track record of success developing and delivering lighting retrofit projects in energy efficiency applications, provide an excellent complement to our existing energy efficiency business," Hinton added. ESCO currently has $0.7 million in contracted backlog and is actively pursuing a large pipeline of potential opportunities.