Limbach Holdings Acquires Pioneer Power for $66.1 Million to Expand Midwest Footprint

Limbach Holdings acquired Pioneer Power for $66.1 million, expanding its footprint in the Midwest and Upper Midwest. Pioneer Power provides industrial and institutional mechanical solutions to healthcare, food, power/utility, and oil refining end markets. The acquisition is expected to contribute $120 million in revenue and $10 million in adjusted EBITDA in 2026, with a focus on integrating operations and unlocking synergies.

Limbach Holdings, Inc. (NASDAQ: LMB) has announced the acquisition of Pioneer Power, Inc. (PPI) for $66.1 million, further strengthening its position as a leader in mission-critical mechanical and maintenance solutions in the Upper Midwest. The acquisition was financed through a combination of available cash and borrowings under the Company’s recently expanded revolving credit facility.

Pioneer Power, founded in 1947, is a provider of industrial and institutional mechanical solutions serving healthcare, food, power/utility, oil refining, and other select end markets in the Greater Twin Cities region and the Upper Midwest. The company offers services such as complex facility shutdowns, turnarounds, capital projects, facility expansions, renovation, retrofit opportunities, and recurring industrial maintenance services.

Limbach expects the acquisition to have an incremental impact on revenue and adjusted EBITDA in 2025 and anticipates providing an updated outlook for fiscal 2025 when it reports second quarter 2025 results in August. Pioneer Power is expected to contribute annualized revenue and adjusted EBITDA of approximately $120 million and $10 million, respectively, beginning in 2026. The primary focus for 2026 will be on integrating operations and unlocking synergies.

Michael McCann, President and Chief Executive Officer of Limbach, commented, "This acquisition further expands our footprint in the core Midwest region and extends our reach into new geographic markets in the Upper Midwest. Since Pioneer Power generates the majority of its revenue through Owner Direct Relationships (ODR), primarily through time and materials contracts and small capital project work focused on maintenance, renovation, and retrofit activity, it aligns well with our strategic shift towards prioritizing ODR. Its industrial expertise builds on the capabilities acquired in our recent acquisition of Consolidated Mechanical and brings many new blue-chip customers with extensive and diverse mechanical system needs in large facilities. Our immediate focus will be on integrating operations and unlocking value by applying our proven value creation strategies to grow market share among core customers, improve gross margins over time, and deepen customer relationships as a trusted provider of mission-critical mechanical services."

The purchase price is subject to customary working capital adjustments and includes owned real property associated with PPI’s headquarters, warehouse, and fabrication facility valued at approximately $4.6 million. In conjunction with the transaction, Limbach entered into an amendment to its credit agreement with its lender, Wheaton Bank & Trust Company, N.A., to expand the size of its revolving credit facility from $50 million to $100 million and make other conforming changes to the credit facility.

Larry Stevens, Jr., Pioneer Power’s President, added, "The combination of Pioneer Power into Limbach will provide our customers, employees, and other stakeholders access to considerable resources to better serve their needs. We are excited to be part of the Limbach organization and look forward to further extending our industrial presence in the Upper Midwest market."

This acquisition is part of Limbach's strategy to grow aggressively while preserving stockholder value. Since becoming public, Limbach has paid more than $150 million in total consideration for strategic acquisitions without issuing any stock as consideration. The company has managed to grow aggressively while maintaining significant financial flexibility and low leverage, positioning it well for continued organic and acquisition-driven growth initiatives.

References:
[1] https://www.stocktitan.net/news/LMB/limbach-acquires-pioneer-w3ih2lq4p7s7.html
[2] https://www.stocktitan.net/news/LMB/