NORWALK, CONNECTICUT, January 7, 2008 – EMCOR Group, Inc. (NYSE: EME) today announced that its Beaumont, Texas-based subsidiary, Ohmstede Ltd., has acquired Redman Equipment & Manufacturing Company, a privately held aftermarket heat exchanger services provider headquartered in Torrance, California. Terms of the transaction were not disclosed.
Founded in 1962, Redman, with annual revenues of approximately $20 million, is a leading West Coast provider of aftermarket repair services, replacement parts and fabrication services for highly engineered mission-critical heat exchangers for the refinery and petrochemical industries.
Frank T. MacInnis, Chairman and Chief Executive Officer of EMCOR, commented, "We are pleased to add Redman as another key link in our expanding presence in the industrial services market. In September, we closed our acquisition of Ohmstede Ltd., the largest provider of aftermarket maintenance and repair services of heat exchangers for refiners and petrochemical companies on the Gulf Coast. The purchase of Redman extends Ohmstede's integrated shop and field service offerings to the West Coast markets. Furthermore, the combination of Redman, Ohmstede, and our Contra Costa and PMI subsidiaries makes EMCOR a leading service provider to the two largest centers of refineries and petrochemical plants in the U.S."
"Redman, in conjunction with our existing OIS field group, provides Ohmstede with the West Coast platform to replicate Ohmstede's unique "Single Point of Responsibility" integrated solution program, providing our customers all aspects of heat exchanger repair, maintenance, and fabrication whether in the field or in a shop", stated Bill Reid, CEO of EMCOR's Ohmstede subsidiary. "This combination of services allows us to provide rapid responses and quick-turn, high-quality service to our customers."
Ohmstede's integrated approach, combining OIS field and Redman shop services, will position Redman as an on-site, sole-source repair services provider for heat exchangers and related equipment under multi-year contracts. This integrated approach includes heat exchanger shop repair, maintenance services, new equipment and replacement parts, specialty callout repair turnaround services and embedded specialty maintenance contracts.
"On the Gulf Coast we work for the largest refinery and petrochemical companies in the country, and many of these customers have asked us to provide these services to their California-based operations", commented Mr. MacInnis. "The teaming of Redman with Ohmstede will provide a new level of service in the West Coast market, and we believe will have immediate effect given the desire of our customers to maximize the effectiveness and efficiency of their refining assets. I am confident we have a winning formula to bring the success we've had in Texas and Louisiana to California, as we will continue to leverage our industrial capabilities throughout North America."
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.
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