Mammoth Energy Services Finishes Sale Of Infrastructure Subsidiaries For $108.7 Mln

(RTTNews) - Mammoth Energy Services, Inc. (TUSK) Monday announced that its subsidiary Lion Power Services LLC has completed a transaction to sell all equity interests in its wholly-owned subsidiaries 5 Star Electric, LLC, Higher Power Electrical, LLC and Python Equipment LLC, to Peak Utility Services Group, Inc.

The aggregate sales price was $108.7 million and Lion Power has received cash proceeds totaling $98.3 million. The remaining $10.4 million was deposited into an escrow account to fund post-closing adjustments.

This transaction helps to unlock significant value for the Mammoth enterprise and the balance sheet will grew to $160 million.

Upon completion of the transaction, Mammoth's CEO Phil Lancaster will become an employee of Peak upon July 1, 2025, or appointment of a successor CEO.

Additionally, the Company has purchased eight small passenger aircraft under lease with a commuter airline for an aggregate amount of approximately $11.5 million. The purchase will be immediately accretive to Mammoth's financial results

The company expects the transaction to be accretive to its shareholders. Mammoth has acquired 5 Star and Higher Power in 2017.