Limbach Holdings said Sept. 1 it acquired Madison, Wisconsin-based MEP contractor 1901 Inc. for $63 million, adding up to $6 million in performance-based earn-outs over the next two years.
The deal gives Limbach its largest electrical operation to date and expands its Midwest footprint with a 125-year-old contractor that brings about 450 employees, including more than 350 field professionals. The acquisition also adds mechanical, plumbing, controls, fabrication, service and underground utility capabilities.
Limbach said 1901 is expected to contribute about $140 million in revenue and $11 million in adjusted EBITDA in 2027. That implies the acquired business would account for roughly 3.6% of Limbach’s current employee base of about 2,100 team members, while adding a substantial new revenue stream tied to healthcare, higher education, industrial and cultural facilities, along with exposure to advanced manufacturing, life sciences and technology.
The purchase was funded with available cash and borrowings under Limbach’s expanded revolving credit facility. The company said the acquisition broadens its geographic reach in the Midwest and strengthens its ability to serve national account customers.
Limbach said it will focus first on integrating 1901 into its operating platform while keeping the local customer relationships and technical expertise intact. The company also said it sees opportunities to cross-sell services and improve margins over time. The market has reacted to these announcements by moving the company's shares 3.59% to a price of $42.70. Check out the company's full 8-K submission here.
