API Group Completes $570M Acquisition, Raises Revenue Guidance

API Group Corporation (NYSE: APG) has recently completed the acquisition of Elevated Facility Services Group for approximately $570 million. This acquisition is expected to contribute approximately $220 million in annual revenue at an approximate 20% adjusted EBITDA margin. The company has raised its full-year guidance for net revenues and adjusted EBITDA, expecting net revenues of $7,150 to $7,350 million, up from $7,050 to $7,250 million and adjusted EBITDA of $875 to $925 million, up from $855 to $905 million.

The company expects the second half of 2024 to bring record profitability and a return to strong organic revenue growth. The 2024 full-year guidance for net revenues including the acquisition of Elevated represents reported revenue growth of approximately 7% to 11% and organic revenue growth of approximately 5% to 9% in the back half of the year. The company also expects full-year 2024 interest expense to be approximately $145 million, down from $150 million.

API Group Corporation is a global, market-leading business services provider with a substantial recurring revenue base and over 500 locations worldwide. The company focuses on fire and life safety, security, elevator and escalator, and specialty services. It provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries.

The company has not provided reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA and growth in organic net revenues to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, business transformation and other expenses for the integration of acquired businesses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions, restructuring costs, amortization of intangible assets, and other charges reflected in the company’s reconciliation of historic numbers. Today the company's shares have moved 4.9% to a price of $37.6. Check out the company's full 8-K submission here.

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