EMCOR Group Inc., Norwalk, Conn., announced that it has signed a definitive agreement with Comfort Systems USA to acquire 19 of Comfort Systems USA's subsidiary companies for about $186.25 million.
EMCOR Group is the nation's third largest electrical contractor, according to CEE News' 2001 Top 50 electrical contractors listing.
The companies to be acquired had 2001 revenues of approximately $650 million and employ approximately 3,800 technical and service employees in 11 states.
These companies, which are predominantly in the Midwest and New Jersey, are active in the installation and maintenance of mechanical systems, including the design and installation of process and fire protection systems, and provide services to a wide variety of industries, including the food processing, pharmaceutical and manufacturing/distribution sectors.
The acquisition is expected to enhance EMCOR's geographic footprint, increasing its presence in growing industrial markets, while creating further cross-selling opportunities for the company's facilities services operations. Additionally, the acquisition will further diversify the company's revenue base.
Frank T. MacInnis, chairman and CEO of EMCOR Group, said, “This acquisition is an excellent strategic fit. The transaction brings into the EMCOR family a number of high-quality operating companies with excellent growth prospects and increases our presence in the Midwest, with the portion of our revenues generated from this region expected to grow to 20 percent from 2001's 11 percent. It also diversifies the end markets EMCOR serves, most notably providing us with a significant presence in the food processing and pharmaceutical sectors.” The acquisition is expected to close in the first quarter of 2002, pending customary closing conditions.