Comfort Systems USA Announces Acquisition
Business Wire 1-Apr-2019 4:28 PM
- Announces Closing of Walker Engineering Acquisition -
Comfort Systems USA, Inc. (NYSE:FIX), a leading provider of
commercial, industrial and institutional heating, ventilation, air
conditioning and electrical contracting services, today announced that
it has closed its previously announced transaction to acquire Walker TX
Holding Company, LLC and its related subsidiaries ("Walker")
headquartered in Irving, Texas.
Walker provides commercial electrical, network, end-user, industrial and
related services in Texas. Walker has offices and operations in the
Dallas/Fort Worth area, Houston, San Antonio and Austin and has helped
to build many of the largest and most complex projects in the State of
Texas.
Brian Lane, Comfort Systems USA's Chief Executive Officer, commented,
"We are extremely happy to announce the closing of the Walker
acquisition, extending our family of companies and lines of business in
the State of Texas. Walker has an exceptional reputation as a premier
electrical contractor, providing outstanding outcomes for its customers
in the mission critical, hospitality, healthcare and industrial markets.
We look forward to our strong partnership and future prospects together."
As previously disclosed, initially Walker is expected to contribute
annualized revenue of approximately $325 million to $375 million, and
earnings before interest, taxes, depreciation and amortization of $20
million to $25 million. In light of the required amortization expense
related to intangibles and other costs associated with the transaction,
the acquisition is expected to make a neutral to slightly accretive
contribution to earnings per share during the first 18 to 24 months
after the acquisition.
Comfort Systems USA® is a premier provider of business
solutions addressing workplace comfort, with 132 locations in 115 cities
around the nation. For more information, visit the Company's website at
www.comfortsystemsusa.com.
Certain statements and information in this press release may
constitute forward-looking statements regarding our future business
expectations, which are subject to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The words "believe,"
"expect," "anticipate," "plan," "intend," "foresee," "should," "would,"
"could," or other similar expressions are intended to identify
forward-looking statements, which are generally not historic in nature.
These forward-looking statements are based on the current expectations
and beliefs of Comfort Systems USA, Inc. and its subsidiaries
(collectively, the "Company") concerning future developments and their
effect on the Company. While the Company's management believes that
these forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting the Company will
be those that it anticipates. All comments concerning the Company's
expectations for future revenue and operating results are based on the
Company's forecasts for its existing operations and do not include the
potential impact of any future acquisitions. The Company's
forward-looking statements involve significant risks and uncertainties
(some of which are beyond the Company's control) and assumptions that
could cause actual future results to differ materially from the
Company's historical experience and its present expectations or
projections. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are
not limited to: the use of incorrect estimates for bidding a fixed-price
contract; undertaking contractual commitments that exceed the Company's
labor resources; failing to perform contractual obligations efficiently
enough to maintain profitability; national or regional weakness in
construction activity and economic conditions; financial difficulties
affecting projects, vendors, customers, or subcontractors; the Company's
backlog failing to translate into actual revenue or profits; failure of
third party subcontractors and suppliers to complete work as anticipated;
difficulty in obtaining or increased costs associated with bonding
and insurance; impairment to goodwill; errors in the Company's
percentage-of-completion method of accounting; the result of competition
in the Company's markets; the Company's decentralized management
structure; material failure to comply with varying state and local laws,
regulations or requirements; debarment from bidding on or performing
government contracts; shortages of labor and specialty building
materials; retention of key management; seasonal fluctuations in the
demand for mechanical systems; the imposition of past and future
liability from environmental, safety, and health regulations including
the inherent risk associated with self-insurance; adverse litigation
results; an increase in our effective tax rate; an information
technology failure or cyber security breach; and other risks detailed in
our reports filed with the Securities and Exchange Commission.
For additional information regarding known material factors that
could cause the Company's results to differ from its projected results,
please see its filings with the SEC, including its Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on
Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as a
result of new information, future events, or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190401005874/en/
