EMCOR Group, Inc. Acquires Performance Mechanical, Inc.
– Acquisition to Strengthen and Broaden EMCOR’s Energy and Industrial Business –
NORWALK, CONNECTICUT, November 15, 2007, - EMCOR Group, Inc. (NYSE: EME) today announced that it has acquired Performance Mechanical, Inc. (PMI), a privately held industrial mechanical construction and maintenance company headquartered in Pittsburg, California. Terms of the transaction were not disclosed.
Founded in 1985, PMI, with annual revenues of approximately $90 million, is a full-service industrial mechanical contractor providing process piping and equipment installation, civil, structural, instrumentation, and boiler installation and repair to electrical generating plants, food and beverage producers, pipeline compressor and metering stations, manufacturing facilities and water treatment plants. PMI’s expertise also includes mechanical maintenance service for industrial turnarounds and maintenance for refineries, terminals, and chemical plants. This broad range of capabilities allows PMI to occupy a prime contracting relationship with many of its customers.
Commenting on the announcement, Frank T. MacInnis, Chairman and Chief Executive Officer of EMCOR, stated, “We are pleased that PMI has joined EMCOR. PMI has leading positions in the refinery and power plant markets and a long-standing reputation as a premier mechanical construction and services company. For many customers, PMI maintains a continuous presence in their facilities providing both construction, maintenance and work order task management.”
EMCOR has long provided industrial electrical contracting and maintenance services to several of PMI’s customers in the San Francisco Bay Area through its Contra Costa Electric, Inc. subsidiary. Contra Costa, with over 60 years of experience, is a recognized leader in refinery and petrochemical construction and maintenance.
Mr. MacInnis continued, “With the addition of PMI, EMCOR now offers an optimal combination of industrial mechanical and electrical construction and maintenance services, serving refineries and industrial facilities in the Bay Area. Contra Costa currently works alongside PMI on many projects, and we expect this relationship to accelerate our growth in this market.”
Mr. MacInnis concluded, “The acquisition of PMI is also another step for EMCOR to grow its presence in the refinery and industrial markets. In September we purchased Ohmstede, the leading Gulf Coast provider of after market maintenance and repair services, replacement parts and fabrication services for shell and tube heat exchangers for the refinery and petrochemical industry. The acquisition of PMI gives us full industrial mechanical and electrical expertise to serve refineries and other industrial companies in Northern California, which complements Ohmstede’s initial presence in the Southern Californian market. And in Canada, our Comstock Company is a leading provider of both electrical and mechanical services to the power industry as well as the oil and gas sector. We plan to leverage our relationships with our industrial customers and provide them with an unparalleled array of services through the combined capabilities of the EMCOR companies and through investment in future opportunities.”
EMCOR Group, Inc. is a Fortune 500® worldwide leader in mechanical and electrical construction services, energy infrastructure and facilities services.
This release may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Any such comments are based upon information available to EMCOR management and its perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with varying profit margins, and selling, general and administrative expenses. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly these statements are no guarantee of future performance. Such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for EMCOR’s services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity and mix of business. Certain of the risks and factors associated with EMCOR’s business are also discussed in the Company’s 2006 Form 10-K, its Form 10-Q for the third quarter ended September 30, 2007, and in other reports filed from time to time with the Securities and Exchange Commission. All these risks and factors should be taken into account in evaluating any forward-looking statements.
FOR:
EMCOR GROUP, INC.
CONTACT:
R. Kevin Matz
Senior Vice President, Shared Services
(203) 849-7938
FD Investors:
Eric Boyriven – 212-850-5600
Linden Alschuler & Kaplan, Inc.
Media: Josh Epstein – 212-575-4545