EMCOR Group, Inc. (NYSE:EME) saw an uptick in its shares on Tuesday following the announcement of its acquisition of Miller Electric Company for $865 million in cash. Miller Electric specializes in the design, installation, maintenance, and upgrades of intricate electrical systems in the Southeast region, catering to a diverse clientele spanning data centers, manufacturing facilities, and healthcare institutions.
The acquisition, which has received unanimous approval from both companies’ boards, is subject to standard adjustments and is expected to be finalized in the first half of 2025 pending customary conditions. EMCOR foresees the transaction to have a positive impact on its earnings per share (EPS) in 2025, with further enhancements in subsequent years.
Miller Electric is anticipated to bring in approximately $805 million in revenue and $80 million in Adjusted EBITDA in 2024. Notably, the company derives the majority of its revenue, around 90%, from Florida and the Southeastern United States, regions where EMCOR currently has a limited presence. As of November 2024, Miller Electric had $755 million in remaining performance obligations.
Tony Guzzi, EMCOR’s Chairman, President, and Chief Executive Officer, expressed enthusiasm about the synergy between the two companies, stating, “The addition of Miller Electric expands EMCOR’s electrical capabilities through their suite of comprehensive, mission-critical services and bolsters our already strong presence in high-growth areas including data centers, manufacturing, and healthcare. With a complementary geographic footprint, this transaction enables us to enhance our ‘local execution, national reach’ strategy as we broaden our overall construction services platform.”
The acquisition will be funded using EMCOR’s existing cash reserves, which stood at $1.04 billion as of September 30. Investors interested in EMCOR Group, Inc. can access the stock through Invesco Building & Construction ETF (NYSE:PKB) and Invesco S&P MidCap Quality ETF (NYSE:XMHQ). As of the latest data available, EME shares were up 3.42% at $483.76 on Tuesday.
In a rapidly evolving market landscape, EMCOR’s move to expand its footprint in the Southeast through the acquisition of Miller Electric signifies a strategic step towards enhancing its service offerings and market presence. The transaction not only strengthens EMCOR’s position in key sectors but also underscores its commitment to growth and innovation in the construction services industry.
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This article, “EMCOR Expands Southeast Footprint With $865 Million Miller Electric Deal,” was originally published on Benzinga.com in 2025. Benzinga upholds journalistic standards and does not offer investment advice. All rights reserved.
