Limbach Acquires Specialty Mechanical Contractor Jake Marshall For $20M

Limbach Holdings Inc LMB has acquired Chattanooga, Tennessee-based specialty mechanical contractor Jake Marshall, LLC, along with certain affiliated companies, for an enterprise value of $20 million in an all-cash transaction.

• In addition, Jake Marshall's owners may receive up to $6 million subject to meeting certain performance thresholders in calendar years 2022 and 2023.
• Jake Marshall provides industrial and institutional mechanical construction, fabrication, and millwright capabilities with an emphasis on owner-direct projects.
• Jake Marshall generated on average more than $45 million in revenue and $4.5 million in EBITDA annually from 2014-2020.
• "This is a highly strategic acquisition that we expect will be immediately accretive to our bottom-line profitability with significant upside potential," said Charlie Bacon, President, and CEO of Limbach.
• Limbach sourced the net consideration equally from available cash and additional term loan borrowings. It held cash and equivalents of $33.3 million as of September 30, 2021.
• Price Action: LMB shares traded higher by 2.71% at $6.82 on the last check Friday.