HOUSTON — Encompass Services Corp. announced that it has entered into an asset purchase agreement, under which substantially all of the assets of the company's Residential Services group will be sold to Residential Acquisition Corp., a company formed by Wellspring Capital Management LLC or certain of its affiliates.
Under this agreement, the assets of the company's Residential Services group will be sold for approximately $40 million, plus the assumption of certain related liabilities. The company entered into the asset purchase agreement after obtaining authority from the United States Bankruptcy Court for the Southern District of Texas, which has jurisdiction over the company's and its subsidiaries' jointly administered Chapter 11 cases, Case No. 02-43582, filed on Nov. 19, 2002.