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NORWALK, Conn. - EMCOR Group, Inc. (NYSE:EME), a Fortune 500 leader in mechanical and electrical construction services with a market capitalization of $21.5 billion, has announced its definitive agreement to acquire Florida-based Miller Electric Company in a transaction valued at $865 million in cash, subject to standard adjustments. According to InvestingPro data, EMCOR maintains a perfect Piotroski Score of 9, indicating exceptional financial strength, with more cash than debt on its balance sheet. The boards of both companies have unanimously approved the deal, which is expected to close in the first half of 2025.
Miller Electric, headquartered in Jacksonville, Florida, is an established electrical contractor with a significant presence across the Southeastern United States. The company specializes in designing, installing, and maintaining complex electrical systems and technologies, with a focus on high-growth industries such as data centers, manufacturing, and healthcare. With over 3,500 skilled professionals and 21 branch locations, Miller Electric's services extend beyond traditional electrical contracting to include systems integration, building automation, and engineering services. This acquisition aligns with EMCOR's strong market position, which has generated impressive returns with a 37% return on equity and annual revenue of $14.2 billion.
The acquisition is set to expand EMCOR's electrical capabilities and increase its footprint in sectors experiencing rapid growth. Miller Electric's strong financial performance is highlighted by its expected revenue of approximately $805 million and Adjusted EBITDA of around $80 million for the calendar year 2024.
Tony Guzzi, Chairman, President, and CEO of EMCOR, praised Miller Electric's legacy of quality solutions and commitment to innovation, noting that the acquisition aligns with EMCOR's strategy of 'local execution, national reach.' He also emphasized the cultural and operational fit between the two companies.
Dan Fitzgibbons, President and CEO of EMCOR Electrical Construction Services, welcomed Miller Electric's team and highlighted their excellence in leveraging advanced technologies to improve project efficiency and quality.
Henry Brown, CEO of Miller Electric, expressed confidence that joining EMCOR will enhance the company's services and offerings, allowing them to further expand and continue their growth trajectory.
Upon completion, Miller Electric will continue to operate within EMCOR's Electrical Construction Services segment, with Brown remaining as CEO and the leadership team intact. The company will maintain its headquarters in Jacksonville.
The acquisition is expected to be modestly accretive to EMCOR's earnings per share in 2025, with further accretion in subsequent years. EMCOR plans to fund the transaction through cash on hand and has already obtained Hart-Scott-Rodino approval.
Further details of the transaction will be discussed during EMCOR's fourth-quarter and full-year 2024 earnings release on February 26, 2025. Evercore and Ropes & Gray LLP are serving as financial and legal advisors to EMCOR, respectively, while Stephens and Driver, McAfee, Hawthorne & Diebenow, PLLC are advising Miller Electric.
This article is based on a press release statement from EMCOR Group, Inc.
In other recent news, EMCOR Group has reported significant financial growth with record Q3 revenues of $3.7 billion, marking a 15.3% increase from the same quarter in 2023. The company's operating income surged by 54.7% to $363.5 million, and diluted earnings per share climbed to $5.80. Despite these achievements, Goldman Sachs initiated coverage on EMCOR Group with a Sell rating, citing a challenging cyclical environment for the company in the medium term. In contrast, Stifel initiated coverage with a Buy rating, highlighting EMCOR's strong positioning to capture a significant share of large data center and manufacturing projects. These recent developments reflect the differing views of analysts regarding EMCOR's future performance. The company's success in mergers and acquisitions and its strong track record were noted by both firms. Despite the differing ratings, both Goldman Sachs and Stifel expect EMCOR to continue leveraging its strengths in the coming years. It's worth noting that these are recent developments and investors should monitor the situation closely.
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