Limbach Holdings Acquires Pioneer Power for $66.1M

By Greg Peters • Thursday, August 07 15:37 • Permanent Link

Limbach Holdings, Inc. has recently announced the acquisition of Pioneer Power, Inc. (PPI) for a total purchase price of $66.1 million. The acquisition was financed through a combination of available cash and borrowings under the Company's recently expanded revolving credit facility. PPI, founded in 1947 and formerly 100% ESOP-owned, is a provider of industrial and institutional mechanical solutions serving various end markets in the Greater Twin Cities region and the Upper Midwest.

Limbach's first interaction with PPI dates back to 2021, and the company reengaged with PPI in late 2024 through direct outreach to their management team. The acquisition is expected to further expand Limbach's footprint in the core Midwest region and extend its reach into new geographic markets in the Upper Midwest.

The acquisition of PPI is significant as it is the largest acquisition in the Company's history as a public company. Limbach expects PPI to contribute $120 million in revenue and $10 million in Adjusted EBITDA in FY 2026. This aligns with Limbach's long-term strategic objectives, as the Company aims to systematically enhance PPI's margins over time, supporting its long-term financial targets and creating additional value for stockholders.

As of July 1, 2025, Limbach had $38.9 million in cash and approximately $84.9 million in available borrowing capacity on its $100 million revolver. The Company used a combination of cash and an additional revolver drawdown of approximately $40 million to fund the PPI transaction.

Limbach has updated its FY 2025 guidance, now expecting total revenue in the range of $650 million to $680 million and Adjusted EBITDA in the range of $80 million to $86 million, reflecting an additional $40 million to $50 million in revenue and $2 million to $4 million in Adjusted EBITDA in the second half for PPI. This update is directly related to the PPI acquisition.

The Company's updated guidance implies that prior to the acquisition, it expected organic top-line revenue growth to be in the 10% to 15% range for the full year 2025, and the Company still believes that is the case.

The market has reacted to these announcements by moving the company's shares 4.58% to a price of $114.70. Check out the company's full 8-K submission here.

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