Limbach Holdings Acquires Kent Island Mechanical for $15M to Expand Mid-Atlantic Presence
Slice of Real Estate Team
09/05/2024
Key Highlights:
- Limbach acquires KIM for $15 million, expanding its presence in the Mid-Atlantic region.
- KIM expected to contribute $30M in revenue and $4M in EBITDA annually by 2025.
- Acquisition strengthens Limbach’s capabilities in critical markets like healthcare and data centers.
- No stock issuance for transaction, with an additional $5 million in contingent earn-outs over two years.
Source (Business Wire)
Quotes
“ “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.” ”
Michael McCann, President and CEO at Limbach Holdings
Our Take:
Limbach's acquisition of Kent Island Mechanical represents a strategic move to solidify its market leadership in the Mid-Atlantic region, particularly in sectors like data centers, healthcare, and life sciences. By integrating KIM’s robust team and capabilities, Limbach is poised to further capitalize on high-demand markets requiring specialized mechanical solutions. The company's approach to funding the acquisition without issuing stock highlights a commitment to shareholder value while positioning itself for substantial growth, with an eye on unlocking synergies by 2025.
