PITTSBURGH, PA--(BUSINESS WIRE)--Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach”), an integrated building systems solutions firm whose expertise is in the design, modular prefabrication, installation, management and maintenance of heating, ventilation, air-conditioning (“HVAC”), mechanical, electrical, plumbing and controls systems, today announced the closing of the acquisition of Chattanooga, TN-based specialty mechanical contractor Jake Marshall, LLC, along with certain affiliated companies (collectively “Jake Marshall”), for an enterprise value of $20 million in an all-cash transaction.
Transaction Highlights
- From 2014-2020, Jake Marshall generated on average more than $45 million in revenue and $4.5 million in EBITDA annually.
- Net consideration paid by Limbach at closing was $20 million1, which was sourced from available cash in the amount of $10 million and additional term loan borrowings of $10 million provided by the Company’s lenders.
- Additionally, Jake Marshall’s owners may receive up to $6 million in total future cash consideration subject to meeting certain performance thresholders in calendar years 2022 and 2023.
Jake Marshall
Serving Southeastern Tennessee, Northern Georgia and Northern Alabama, Jake Marshall provides industrial and institutional mechanical construction, fabrication and millwright capabilities with an emphasis on owner-direct projects. Key industries served by Jake Marshall include automotive, food processing, packing, specialty chemicals and utilities, in addition to a dominant presence in the healthcare and higher education markets in the greater Chattanooga market.
“This is a highly strategic acquisition that we expect will be immediately accretive to our bottom-line profitability with significant upside potential,” said Charlie Bacon, President and CEO of Limbach. “Our strategy has been directed toward expanding our owner-direct focus, both organically and through the acquisition of companies that meet our strategic objectives. Jake Marshall is an excellent fit with our criteria. In addition to expanding Limbach’s presence in the southeast, Jake Marshall provides expanded owner-direct relationships in industrial and core institutional markets, best-in-class fabrication capabilities, and human capital assets that routinely exceed customer and stakeholder expectations. Rick Pollard and his team have built an excellent business with a terrific culture, and we are thrilled to be working together under the Limbach umbrella.”
Jake Marshall’s Chief Manager, Rick Pollard commented, “Jake Marshall has been a leading mechanical contractor in its markets for over fifty years, and we look forward to maintaining that position and reputation as part of Limbach. We are excited by the opportunities that Limbach’s platform provides in engineering, design and human capital areas, and we look forward to helping leverage Jake Marshall’s industrial resume and fabrication capabilities throughout Limbach’s other business units. We share a common culture and focus on caring for employees and serving customers, attributes that are core to Jake Marshall’s success.”
Limbach
Limbach is an integrated building systems solutions firm whose expertise is in the design, modular prefabrication, installation, management and maintenance of heating, ventilation, air-conditioning (“HVAC”), mechanical, electrical, plumbing and controls systems. Our market sectors primarily include the following: healthcare, life sciences, data centers, industrial and light manufacturing, entertainment, education and government. With 22 offices throughout the United States and Limbach's full life-cycle capabilities, from concept design and engineering through system commissioning and recurring 24/7 service and maintenance, Limbach is positioned as a value-added and essential partner for building owners, construction managers, general contractors and energy service companies.
We make forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995.