Fortune 500 Construction and Building Services Giant Buys Atlanta Company
Monday, October 7th, 2019
EMCOR Group, Inc. announced that it has entered into a definitive agreement to acquire Batchelor & Kimball, Inc. (“BKI”), a leading full service provider of mechanical construction and maintenance services, in an all-cash transaction.
Founded in 1979 and headquartered in Atlanta, GA, BKI is one of the preeminent full service U.S. commercial and industrial mechanical construction and maintenance service companies. Throughout its history, BKI has prided itself in maintaining strong customer relationships and has designed, installed, constructed and maintained the HVAC and plumbing systems in a wide variety of projects for all types of non-residential facilities, including hospitals, laboratories, data centers, schools, airports and office buildings. Upon completion of the transaction, BKI will be part of EMCOR’s U.S. Mechanical Construction and Facilities Services segment.
Tony Guzzi, Chairman, President and Chief Executive Officer of EMCOR, commented, “We are excited to be acquiring BKI, which further strengthens EMCOR’s position in mechanical construction and maintenance services and broadens our capabilities across the South and Southeast regions. BKI is recognized as a value-added provider to a discerning customer base that operates highly complex infrastructure where construction, maintenance and operation services are mission-critical.”
“We firmly believe EMCOR is a natural home for BKI” stated Brian Batchelor, Chief Executive Officer of BKI. “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 BKI. We look forward to delivering sustainable growth and exceptional customer value as part of EMCOR.”
The transaction is expected to close by the end of 2019, subject to customary closing conditions and regulatory approvals. For 2020, BKI is expected to contribute revenues of approximately $400 million with nominal diluted EPS accretion. The earnings contribution from such increased revenues will be partially offset by amortization expense associated with acquired intangible assets. Non-GAAP EBITDA margins for BKI are expected to be at the higher end of subsidiaries that are included in our U.S. Mechanical Construction and Facilities Services segment.
Mr. Guzzi, concluded, “EMCOR is the leading specialty construction, building and industrial services company in the nation and BKI will strengthen our mechanical construction and services operation. Sharing our core operational values, BKI’s best-in-class execution, deep operational and field-level expertise, and leading safety record will bolster our competitive advantages. With one of the most experienced, talented executive and field-level management teams in the mechanical construction industry, BKI will further broaden and enhance the service offerings EMCOR provides to its customers.”