UPDATE: EMCOR Up 6% On RepconStrickland Buy
EMCOR Group ( EME ) is now up 5.7% at near $40.90 after the company said late Monday that it has entered into a definitive agreement to acquire RepconStrickland, a provider of recurring turnaround and specialty services to the North American refinery and petrochemical markets. EMCOR is acquiring the privately held company in an all-cash transaction valued at approximately $455 million from its shareholders, including its majority shareholder, an affiliate of ArcLight Capital Partners, LLC, an energy-focused private equity fund.
The company also said that it expects the RepconStrickland acquisition to be modestly accretive with about $0.10 in 2013, excluding transaction expenses, with that accretion anticipated to accelerate in 2014. Estimated transaction costs are expected to be between $6.0 million - $7.0 million.
Also, EMCOR's subsidiary Poole & Kent Company recently received a contract to install a reverse osmosis water treatment plant in Clearwater, FL. The financial terms of the deal were not disclosed.