Comfort Systems USA, Inc. (NYSE:FIX),
a leading provider of commercial, industrial and institutional heating, ventilation and air conditioning (“HVAC”) services, today announced that it has acquired a majority interest in Environmental Air Systems (“EAS”) headquartered in Greensboro, North Carolina.
EAS is a regional mechanical contractor with principal offices in Greensboro and Raleigh, North Carolina. EAS engages in a broad range of mechanical contracting projects, HVAC service and controls, and sophisticated prefabrication of mechanical systems, in North Carolina and South Carolina and across the Atlantic region. EAS is organized into three primary business activities: a traditional contracting business with a strong emphasis on healthcare, technology, pharmaceutical and education customers, a service and controls business, and a customized prefabrication or “off-site construction” business. The off-site construction business represents approximately 25-30% of EAS’s revenue, and adds capabilities and business delivery advantages that greatly strengthen the EAS overall customer offering and that are instrumental in gaining business across EAS.
Comfort has acquired 60% of the business, and EAS is expected to be accounted for on a consolidated basis. Initially EAS is expected to contribute annualized revenues of approximately $100 million to $110 million at profitability levels that are generally above those currently experienced in the mechanical contracting industry.
In light of the required amortization expense related to certain 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 12 to 18 months after the acquisition.
Bill Murdy, Comfort Systems USA’s Chief Executive Officer, commented, “We are extremely happy to announce that EAS is joining Comfort Systems USA. EAS has a long history of providing extraordinary outcomes for its customers in applications ranging from data centers and pharmaceutical facilities to hospitals and universities. This partnership with EAS brings excellent capabilities, resources and leadership at every level, and we expect that EAS will continue to grow and improve for years to come.”