(RTTNews) - ABM Industries Inc (ABM), an integrated facility, infrastructure, and technical solutions provider, Wednesday announced that it has entered into a definitive agreement to acquire WGNSTAR, a provider of managed workforce solutions and equipment support services for around $275 million in cash.
Following this acquisition, ABM expects its semiconductor solutions portfolio to be around $325 million in revenue annually, establishing it among the largest integrated service providers in North America.
The transaction is expected to be modestly dilutive to adjusted EPS in fiscal 2026, mainly due to amortization of acquired intangibles and related interest expense. Though in fiscal 2027 it is anticipated to be $0.05 to $0.07 accretive and accelerate from there driven by growth and synergy realization.
WGNSTAR is expected to generate annual revenue of approximately $135 million in calendar 2025 with adjusted EBITDA margins in excess of ABMs Manufacturing & Distribution or M&D segment, along with an anticipated annual growth rate of about 10 percent, ABM said in a statement.
The acquisition will be funded through a combination of cash and existing credit facilities and is expected to close in the second fiscal quarter of 2026. WGNSTARs results will be reported as part of the company's M&D segment.
In pre-market activity, ABM shares were trading at $46.01, up 0.59% on the New York Stock Exchange.
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