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EMCOR Group, Inc. Announces Agreement to Acquire RepconStrickland

  EMCOR Group, Inc. Announces Agreement to Acquire RepconStrickland

    - Premier Service Provider of Turnaround and Specialty Services to the
                     Refinery and Petrochemical Markets -

 - Further Strengthens EMCOR’s Position in the Industrial Services and Energy
                                  Sectors -

Business Wire

NORWALK, Conn. -- June 17, 2013

EMCOR Group, Inc. (NYSE: EME) today announced that it has entered into a
definitive agreement to acquire RepconStrickland, Inc. (“RepconStrickland”), a
leading provider of recurring turnaround and specialty services to the North
American refinery and petrochemical markets. EMCOR is acquiring the privately
held company in an all cash transaction valued at approximately $455 million
from its shareholders, including its majority shareholder, an affiliate of
ArcLight Capital Partners, LLC, an energy focused private equity fund.

Headquartered in La Porte, TX and Corpus Christi, TX, RepconStrickland has a
36-year history as one of the preeminent U.S. industrial and refinery service
companies. With a track record of superior project execution and an
industry-leading safety record, RepconStrickland is a leader in executing
turnarounds for critical process units.

The RepconStrickland platform includes five recognized brands with
capabilities encompassing a broad spectrum of turnaround and specialty
services, including shutdowns, overhauls, revamps, capital projects,
engineering and constructability reviews, project management, welding
services, refractory services, tower services and emergency repair.
RepconStrickland generated revenues of approximately $400 million in 2012.

Tony Guzzi, President and Chief Executive Officer of EMCOR Group, commented,
“The acquisition of RepconStrickland strengthens our position in the
industrial and energy sectors which are attractive industries poised for
future growth. RepconStrickland is an extremely well-run organization that
provides turnaround and specialty services across North America, with a focus
in the U.S. Gulf. The team has an outstanding reputation in the industry, from
both managerial and safety perspectives, and will become a key asset to EMCOR
going forward. RepconStrickland operates in markets adjacent to our existing
Ohmstede operations, provides solid long-term growth potential, is resilient
during down cycles and creates additional access to high-margin, high-growth
markets that will help fulfill many of our strategic goals.”

“We firmly believe EMCOR is an excellent natural fit for RepconStrickland,”
stated Bob Parker, President and Chief Executive Officer of RepconStrickland.
“The prospect of working with a proven industry leader that shares our
commitment to customer loyalty and safety, while maintaining our
organizational structure, is a great opportunity for everyone at
RepconStrickland. We are excited to join the EMCOR organization and look
forward to partnering with the EMCOR and Ohmstede team to produce sustainable
growth and exceptional customer value.”

The transaction is expected to close in early July, subject to customary
closing conditions and regulatory approvals. The acquisition of
RepconStrickland is expected to be accretive to EMCOR’s earnings for the
balance of 2013 by approximately $0.10 per share, excluding transaction
expenses, with significantly accelerated earnings per share contribution in
2014. Estimated transaction costs are expected to be between $6.0 million -
$7.0 million.

Mr. Guzzi concluded, “Supported by attractive industry drivers,
RepconStrickland is well-positioned to grow organically through market share
expansion of existing refinery customers and capitalizing on capacity
expansions in the adjacent petrochemical industry. Given the complementary
nature of its services, adding RepconStrickland to our existing operations
will allow EMCOR to offer additional opportunities to its customers of
turnaround services and heat exchangers, increase our overall customer
responsiveness and maximize our labor and shop utilization. Furthermore, our
prior successful integration of Ohmstede gives us the experience and
confidence that RepconStrickland will transition quickly into our
organization.”

J.P. Morgan Securities LLC is acting as financial advisor to EMCOR Group.

Harris Williams & Co. is acting as the exclusive financial advisor to
RepconStrickland.

EMCOR Group, Inc. is a Fortune 500 worldwide leader in mechanical and
electrical construction services, industrial and energy infrastructure and
facilities services. This press release and other press releases may be viewed
at the Company's Web site at www.emcorgroup.com.

Conference Call

A conference call to discuss EMCOR Group’s acquisition of RepconStrickland
will be available live via internet broadcast today, Monday, June 17, at 5:00
PM Eastern Daylight Time. You can access the live call through the Home Page
of the Company's Web site at www.emcorgroup.com.

This release may contain certain forward-looking statements within the meaning
of the Private Securities Reform Act of 1995. Any such comments are based upon
information available to EMCOR management and its perception thereof, as of
this date, and EMCOR assumes no obligation to update any such forward-looking
statements. These forward-looking statements may include statements regarding
market opportunities, market share growth, gross profit, backlog mix, projects
with varying profit margins, and selling, general and administrative expenses.
These forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking statements.
Accordingly these statements are no guarantee of future performance. Such risk
and uncertainties include, but are not limited to, adverse effects of general
economic conditions, changes in the political environment, changes in the
specific markets for EMCOR's services, adverse business conditions,
availability of adequate levels of surety bonding, increased competition,
unfavorable labor productivity and mix of business. Certain of the risks and
factors associated with EMCOR's business are also discussed in the Company's
2012 Form 10-K and in other reports filed from time to time with the
Securities and Exchange Commission. All these risks and factors should be
taken into account in evaluating any forward-looking statements.

Contact:

FOR: EMCOR GROUP, INC.
R. Kevin Matz
Executive Vice President
Shared Services
203-849-7938
or
FTI Consulting, Inc.
Investors: Nathan Elwell/Matt Steinberg
212-850-5600
or
Linden Alschuler & Kaplan, Inc.
Media: Lisa Linden/Mollie Fullington
212-575-4545 / 917-346-6123
 
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