Business
Limbach Holdings Acquires Kent Island Mechanical
A leading provider of building systems solutions in the Greater Washington, D.C. metro region WARRENDALE, Pa.--(BUSINESS WIRE)-- Limbach Holdings, Inc.
About this update from Limbach Holdings, Inc.
[{"type":"text","content":"\nA leading provider of building systems solutions in the Greater Washington, D.C. metro region\n\n\n WARRENDALE, Pa.--(BUSINESS WIRE)--\nLimbach Holdings, Inc. (Nasdaq: LMB) (\"Limbach\" or the \"Company\"), a building systems solutions firm that partners with building owners and facilities managers who have mission critical mechanical, electrical and plumbing infrastructure, today announced that it has acquired Kent Island Mechanical, LLC (“KIM”) for an initial purchase price of $15 million. Based in Laurel, Maryland and serving the Greater Washington, D.C. metro region, KIM is a leading service provider to facility owners who require solutions for maintaining complex building systems.\n\n\nTransaction Highlights\n\n\n\nThe acquisition expands Limbach’s design, engineering, maintenance, capital project, and emergency mechanical solutions capabilities in key end-markets, including data centers, healthcare, life sciences, and higher education.\n\n\n\nKIM’s talented workforce, business model, and customer base complement and bolster Limbach’s existing Mid-Atlantic business and aligns with the Company’s strategy to expand Owner Direct Relationships (“ODR”) with owners of mission-critical facilities in core end-markets.\n\n\n\nLimbach’s current expectation is that KIM will contribute approximately $30 million in revenue and over $4 million in EBITDA annually beginning in 2025.\n\n\n\nTotal consideration paid by Limbach at closing was $15 million (subject to typical working capital adjustments). The acquisition will be funded from available cash and has performance-based, contingent earn-outs totaling $5 million, which would potentially be payable over the next two years.\n\n\n\nManagement Commentary\n\n\nMichael McCann, President and CEO of Limbach, said, “We are excited to welcome the KIM team to the Limbach family. The combination of KIM and our Mid-Atlantic operating unit will create a dominant mechanical systems solutions provider in the high growth, Mid-Atlantic region. KIM has an outstanding reputation for execution excellence and strong customer relationships that align with our strategy, values, and safety oriented and customer-centric culture. We anticipate a modest impact in 2024 to our revenue and earnings from the acquisition, and our primary focus will be on integrating operations and unlocking synergies in 2025. With ...