HOUSTON, TX -- Comfort Systems USA, Inc. (NYSE: FIX) today announced that it has entered into a definitive agreement to acquire Tennessee Electric Company, Inc. dba T E C Industrial Construction and Maintenance (“T E C”) headquartered in Kingsport, Tennessee.
T E C was founded in 1947 and provides multidisciplined construction and industrial services including electrical, mechanical and other plant services primarily in Tennessee and surrounding states. Initially, T E C is expected to contribute annualized revenues of approximately $90 million to $100 million, and earnings before interest, taxes, depreciation and amortization of $8 million to $9 million. In light of the required amortization expense related to intangibles and other costs associated with the transaction, the acquisition is expected to make a neutral to slightly accretive contribution to earnings per share in 2021 and 2022.
Brian Lane, Comfort Systems USA’s Chief Executive Officer, commented, “We are very happy to announce that T E C and its team of professionals with unique industrial construction and plant service expertise have joined Comfort Systems USA. T E C has remarkable capabilities and relationships with complex industrial clients, and I am confident that we and they can benefit from collaboration, training and continued investment in their people and business.”
Greg Boehling, Chief Executive Officer of T E C, commented, “The most important consideration for us in choosing to join Comfort Systems USA is that they share our core values of safety, integrity and performance. We believe that our partnership with Comfort Systems USA will enable us to enhance our commitment and investment in our people and to better serve our customers, our communities and to continue our long history of delivering complex services in the industrial sector.”
Brian Lane concluded, “T E C brings extraordinary capabilities and a remarkable reputation with demanding industrial customers across their region. I am thrilled that T E C has chosen to join Comfort Systems USA.”
Comfort Systems USA® is a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, with 137 locations in 112 cities around the nation. For more information, visit the Company’s website at www.comfortsystemsusa.com.
Certain statements and information in this press release may constitute forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.