EMCOR Group Inc
) signed a definitive agreement to acquire RepconStrickland in an
all cash deal valued at $455 million. Subject to regulatory
approvals, the acquisition is expected to close by Jul 2013. J.P.
Morgan Securities LLC will be the financial advisor to EMCOR
Group, while Harris Williams & Co. will be the exclusive
financial advisor to RepconStrickland.
Based in La Porte and Corpus Christi, Texas, RepconStrickland
is one of the leading U.S. industrial and refinery service
companies. It is a leading provider of turnaround and specialty
services to the North American refinery and petrochemical
markets. RepconStrickland has a proven track record of solid
project execution and an industry-leading safety record as well.
In addition, the company is a renowned leader in executing
turnarounds for critical process units. In 2012, RepconStrickland
reported revenues of $440 million.
The acquisition of RepconStrickland is a strategic move by
EMCOR as it strengthens the latter's position in the industrial
and energy sectors, which at the moment are attractive industries
offering a good growth potential.
The acquisition complements EMCOR's existing line of business.
With RepconStrickland on board, EMCOR will be able to offer new
and better opportunities to its customers of turnaround services
and heat exchangers, thereby improving its customer satisfaction
and maximizing labor and shop utilization. EMCOR believes that
the acquisition will be accretive to its earnings for the rest of
2013 by about 10 cents per share. Transaction costs related to
this acquisition are expected to be in the range of $6.0 million
to $7.0 million.
With revenues of approximately $6.3 billion, EMCOR Group is a
leader in mechanical and electrical construction, energy
infrastructure, and facilities services.
EMCOR currently has Zacks Rank #3 (Hold). Other sector
participants worth considering at the moment include
Primoris Services Corp
Orion Marine Group
Willdan Group Inc
). All three carry a Zacks Rank #2 (Buy).
EMCOR GROUP INC (EME): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
PRIMORIS SERVCS (PRIM): Free Stock Analysis
WILLDAN GROUP (WLDN): Get Free Report
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