EMCOR Group, Inc. (EME), a provider of mechanical and electrical construction services, announced on Tuesday its definitive agreement to acquire Miller Electric Co. for $865 million in cash, with customary adjustments expected. This transaction has received unanimous approval from the boards of directors of both companies.
The acquisition is anticipated to slightly boost EMCOR's earnings per share by 2025, with further benefits expected in subsequent years. EMCOR plans to finance the purchase using existing cash reserves, aiming to finalize the deal in the first half of 2025, pending typical closing conditions.
Miller Electric, headquartered in Florida, operates extensively across the Southeastern United States as an electrical contractor. The company specializes in the design, installation, maintenance, upgrade, and replacement of intricate electrical systems and related technologies. Employing over 3,500 professionals, Miller Electric boasts a robust commercial electrical contractor platform with 21 branch locations, serving more than 1,000 clients. Presently, approximately 90% of Miller Electric's revenue originates from Florida and the southeastern U.S., a region where EMCOR currently has a limited electrical construction footprint.
Once the acquisition is finalized, Miller Electric will be integrated into EMCOR's Electrical Construction Services division, under the leadership of Dan Fitzgibbons, President and CEO of EMCOR Electrical Construction Services. Henry Brown will remain as CEO of Miller Electric, alongside the existing leadership team, with its headquarters continuing in Jacksonville, Florida.
Post-acquisition, EMCOR anticipates Miller Electric to generate around $805 million in revenue and approximately $80 million in Adjusted EBITDA for the 2024 calendar year. As of November 2024, Miller Electric reported having $755 million in outstanding performance obligations.
In pre-market trading on the NYSE, EMCOR's shares rose to $472.21, marking a 0.95% increase.
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