Norwalk, CT — EMCOR Group has definitively agreed to acquire USM Services Holdings, Inc. from Transfield Services Limited for $255 million.
Norwalk, CT — EMCOR Group, Inc. has entered into a definitive agreement to acquire USM Services Holdings, Inc. (USM), a leading provider of facilities maintenance solutions in North America, from Transfield Services Limited in an all-cash transaction for $255 million, representing $225 million for the base USM business plus $30 million for the net present value of a USM tax benefit. Transfield Services Limited is an Australian-based global provider of operations, asset management and project management services. The transaction is expected to close towards the end of June. EMCOR will utilize available cash to finance the acquisition.
Headquartered in Norristown, Pa., and with annual revenues of approximately $375 million, USM is a leading provider of essential facilities maintenance services, including interior and exterior services and electrical, mechanical and plumbing services, to national and regional commercial customers that typically maintain more than 100 sites across wide geographic areas.
“Our combination with USM, a leader in a very large, growing and highly fragmented market, will offer access to potential new customers for EMCOR’s capabilities in energy efficiency, retrofit projects, building controls upgrades, monitoring and maintenance management, and will enable us to bring new services to our existing customers,” says Tony Guzzi, president and CEO of EMCOR.
“We look forward to joining the EMCOR team,” says Ivan Dubow, COO of USM. “Both companies are industry leaders with strong commitments to customer relationships, margin, cash generation and employee development. These shared values speak to a promising future, and we look forward to working together.”
Operating efficiencies are expected to be generated from the combination of USM and EMCOR’s facilities businesses, resulting in targeted annualized expense reductions of approximately $5 to $6 million over the next 2 years.
For more information, visit www.emcorgroup.com.