EMCOR Buys ECM Holding, Boosting Energy Efficiency Specialty Services Business

EMCOR Group Inc EME inked a deal to acquire ECM Holding Group, Inc in cash for undisclosed terms.

Oshkosh, Wisconsin-based ECM offers energy efficiency retrofit services, specializing in providing a variety of HVAC, lighting, water, weatherization, and airflow management solutions nationally. ECM's 2023 estimated revenues total $60 million.

The transaction is expected to close in Q3 2023, subject to customary closing conditions.

"ECM further strengthens EMCOR's position in energy efficiency specialty services and expands our nationwide bundled energy conservation and sustainability solutions portfolio. Additionally, the leadership team of ECM brings a wealth of experience in serving Energy Services Companies (ESCOs) to EMCOR, including deep relationships with some of the nation's largest commercial and industrial companies. Furthermore, ECM's ability to identify, validate, and self-implement multiple energy conservation measures offers a streamlined and replicable approach for our customers to achieve their sustainability goals," said Mike Bordes, President and CEO of EMCOR Building Services.

In April, EME reported Q1 revenues of $2.89 billion, beating the consensus of $2.87 billion and EPS of $2.32, exceeding the street estimate of $1.80. 

As of March 31, 2023, cash and cash equivalents stood at $420.1 million. 

Price Action: EME shares are trading lower by 0.85% at $182.70 on the last check Wednesday.