EMCOR Group, Inc. (NYSE:EME) shares are trading higher on Tuesday after the company disclosed a deal to acquire Miller Electric Company for $865 million in cash.

Miller Electric provides design, installation, maintenance, and upgrades for complex electrical systems across the Southeast, serving over 1,000 clients in sectors like data centers, manufacturing, and healthcare.

The deal, unanimously approved by both boards, is subject to customary adjustments.

EMCOR expects the deal to close in the first half of 2025, subject to customary conditions.

The acquisition is anticipated to be modestly accretive to EMCOR’s EPS in 2025, with further accretion in subsequent years.

EMCOR expects Miller Electric to generate around $805 million in revenue and $80 million in Adjusted EBITDA in 2024.

Miller Electric, with a strong growth and cash flow profile, generates about 90% of its revenue from Florida and the Southeastern U.S., regions where EMCOR has a limited presence.

As of November 2024, Miller Electric had $755 million in remaining performance obligations.

Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, said, “The addition of Miller Electric expands EMCOR’s electrical capabilities through their suite of comprehensive, mission-critical services and bolsters our already strong presence in high-growth areas including data centers, manufacturing, and healthcare.”

”With a complementary geographic footprint, this transaction enables us to enhance our ‘local execution, national reach’ strategy as we broaden our overall construction services platform.”

EMCOR expects to fund the transaction through cash on hand. As of September 30, cash and equivalents stood at $1.04 billion.

Investors can gain exposure to the stock via Invesco Building & Construction ETF (NYSE:PKB) and Invesco S&P MidCap Quality ETF (NYSE:XMHQ).

Price Action: EME shares are up 3.42% at $483.76 at the last check Tuesday.

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This article EMCOR Expands Southeast Footprint With $865 Million Miller Electric Deal originally appeared on Benzinga.com

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