ROUND ROCK, TEXAS — American Plumbing & Mechanical closed an agreement in mid-January to sell AMPAM Commercial Sherwood Mechanical to Sherwood Mechanical, which was formed under the existing local management group.
The sale is part of AMPAM’s corporate restructuring strategy to improve its capital structure and focus on its core competency of residential plumbing and mechanical contracting. Located in Poway, Calif., Sherwood is a large mechanical contractors in Southern California, providing full-service commercial plumbing and utility services.
The transaction was previously approved by AMPAM’s board and supported by AMPAM’s senior lenders and the Official Unsecured Creditors’ Committee. On Jan. 8, the Bankruptcy Court authorized the sale of Sherwood.
“AMPAM believes this transaction is the best option to deliver maximum value to our economic stakeholders and will have minimal, if any, impact on our core businesses,” said Robert Christianson, AMPAM’s chairman and CEO. “With this sale, we have now successfully divested all of our commercial operations which will allow us to concentrate on our core strengths — residential single- and multifamily plumbing, heating, ventilation and air conditioning contracting. The sale of Sherwood’s assets is an important piece in finalizing our plan for reorganization.”
In CONTRACTOR’s 2003 Book of Giants (May, pg. 38), AMPAM ranked as the nation’s seventh largest mechanical contractor with $574.85 million in revenue, which was a 5.17% decline from the previous year.