Limbach Expands Industrial Reach: Acquires Consolidated Mechanical

Limbach Holdings, Inc. (NASDAQ: LMB) has made a strategic move to boost its industrial presence by acquiring Consolidated Mechanical, Inc. (CMI), a leading provider of industrial facility systems solutions. This acquisition, announced on December 2, 2024, expands Limbach's owner direct relationships and enhances its reach into the industrial sector, particularly in power generation, food processing, manufacturing, and metals markets in Kentucky, Illinois, and Michigan.

CMI, founded in 1984, brings a wealth of experience and expertise to Limbach, with a strong reputation for delivering exceptional solutions in the local and regional markets. The acquisition is expected to have a negligible impact on Limbach's revenue and earnings in 2024, as the focus will be on integrating operations and unlocking synergies in 2025. CMI is projected to contribute annualized revenue of approximately $23 million beginning in 2025, with an expected EBITDA of $4 million per annum.

Limbach's President and CEO, Michael McCann, expressed excitement about the acquisition: "We are excited to welcome the CMI team to the Limbach family. This acquisition enhances our regional footprint and increases our ability to provide solutions and services to our national customers. Additionally, CMI extends our reach into industrial mechanical services, including power generation, food processing, manufacturing, and metals end-markets, and by significantly broadening our service offerings."

CMI's President, Chuck Thompson, shared a similar sentiment: "Combining with Limbach joins two great organizations that share a common culture and an unparalleled dedication to caring for employees and servicing the mechanical needs of mission-critical customers. We appreciate Limbach's commitment to our community as well as the end markets we serve and are excited to become a pillar of Limbach's growing industrial presence."

This acquisition aligns with Limbach's strategic goals and value creation model, leading to mutual growth and success. The acquisition was internally sourced by Limbach, funded from available cash, and has performance-based, contingent earn-outs totaling up to $2 million potentially payable over the next two years. Limbach paid an initial purchase price of $23 million, subject to typical working capital adjustments.

In conclusion, Limbach's acquisition of Consolidated Mechanical is a strategic and accretive move, expanding the company's industrial mechanical services sector and broadening its service offerings. This acquisition aligns with Limbach's strategic goals and value creation model, leading to mutual growth and success. Investors looking for enduring companies with robust management and enduring business models may want to consider Limbach Holdings as a potential addition to their portfolios.