The agreement and plan of merger calls for the shareholders of CJ Hughes to receive $36,896 in cash and 6,434.7 shares of Energy Services common stock for each share of CJ Hughes stock held. The total merger consideration will be approximately 50% cash and 50% common stock with a total value of $34 million as of the date of the agreement.
Under certain circumstances the number of shares to be issued may be increased in order to ensure that at least 40% of the value to be paid to CJ Hughes shareholders is in common stock.
Marshall Reynolds, chairman of Energy Services, said: We believe that with the combined strengths of CJ Hughes along with those of the previously announced transaction with ST Pipeline, Energy Services will be well positioned to pursue the growth possibilities that exist within the energy services industry today.
