Mammoth Energy Services (TUSK) surged more than 32% in recent Monday trading after disclosing the sale of three infrastructure subsidiaries to privately held Peak Utility Services Group for a total of $108.7 million.
The company received $98.3 million in cash at closing for its former Higher Power Electrical, 5 Star Electric, and Python Equipment units, with the remaining $10.4 million placed in escrow to cover potential indemnified liabilities and other post-closing adjustments.
Mammoth also said CEO Phil Lancaster will join Peak as an employee on July 1, or earlier if a successor is named.
Following the transaction, Mammoth's cash position rose to about $160 million. The company said it expects improved earnings due to the divestiture and its recent $11.5 million acquisition of eight small passenger aircraft under lease with a commuter airline.
Mammoth also amended its revolving credit facility to permit share repurchases of up to 10 million shares or $50 million, whichever is less.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.