Ecology & Environment has sold its majority stake in a Kentucky environmental services firm that specialized in the mining and energy sectors.
E&E sold its 60 percent stake in ESCI LLC to the Lafayette Cumberland Group, which like ESCI is based in Lexington, Ky. The sale price was $300,000, E&E said in a filing with the Securities and Exchange Commission.
E&E said it booked a $400,000 loss on the sale. ESCI had $2.5 million in sales during the fiscal year that ended in July.
ESCI’s sale had dropped by nearly 50 percent over the past two years – a decline that E&E blamed on less work in the mining business as ESCI’s contracts expired and were not renewed or replaced with new work. The subsidiary had posted losses of $300,000 during each of the last two fiscal years and E&E said in its filing that ESCI’s operating losses were expected to continue for the foreseeable future