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USM bought out

Discussion in 'Commercial Snow Removal' started by grandview, May 18, 2011.

  1. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Emcor Group Acquires USM Services

    Emcor Group Acquires USM Services


    Press Release

    - USM is a Leading North American Provider of Facilities Maintenance Services to National and Multi-Site Commercial Customers

    - Combination of USM and EMCOR's Services Business Creates Premier
    Nationwide Provider of Facilities Maintenance Services -

    NORWALK, CONNECTICUT, May 18, 2011 – EMCOR Group, Inc. (NYSE: EME) today announced that it has entered into a definitive agreement to acquire USM Services Holdings, Inc. ("USM"), a leading provider of facilities maintenance solutions in North America, from Transfield Services Limited (ASE: TSE) in an all-cash transaction for $255 million, representing $225 million for the base USM business plus $30 million for the net present value of a USM tax benefit. Transfield Services Limited is an Australian-based global provider of operations, asset management and project management services. The transaction is expected to close towards the end of June, subject to customary closing conditions. EMCOR will utilize available cash to finance the acquisition.

    Headquartered in Norristown, Pennsylvania and with annual revenues of approximately $375 million, USM is a leading provider of essential facilities maintenance services, including interior and exterior services and electrical, mechanical and plumbing services, to national and regional commercial customers that typically maintain more than 100 sites across wide geographic areas. With its highly-developed proprietary network of over 11,000 service partners, USM delivers consistent facilities maintenance services across a nationwide footprint for approximately 150 customers in over 75,000 locations in all 50 states and Canada.

    EMCOR Announces Agreement to Acquire USM Services Holdings
    Tony Guzzi, President and Chief Executive Officer of EMCOR, commented, "We are excited to be acquiring USM, which further strengthens EMCOR's market leading position in facilities and maintenance services. Led by an outstanding and experienced management team, USM is a highly respected provider of facilities maintenance services to some of the most prominent retail, banking, and other commercial companies across the country. Our two businesses are highly complementary to each other, as USM is a leader in predictive, scheduled interior and exterior maintenance services, while EMCOR leads the market in providing site-based and mechanical services and other electrical and mechanical trades services. In an environment in which customers are increasingly looking to centralize their outsourcing with a quality provider, we will together offer a compelling, comprehensive value proposition that is unmatched in the marketplace."

    Mr. Guzzi continued, "Our combination with USM, a leader in a very large, growing and highly fragmented market, will offer access to potential new customers for EMCOR's capabilities in energy efficiency, retrofit projects, building controls upgrades, monitoring and maintenance management, and will enable us to bring new services to our existing customers. USM also has excellent revenue visibility and solid margin performance, and by combining aspects of our businesses, we expect to gain greater operational efficiencies and scale that will translate into reduced costs for the benefit of both EMCOR and our customers."

    "We look forward to joining the EMCOR team," stated Ivan Dubow, Chief Operating Officer of USM. "Both companies are industry leaders with strong commitments to customer relationships, margin, cash generation and employee development. These shared values speak to a promising future, and we look forward to working together."

    For the balance of 2011, the acquisition of USM is expected to add approximately $160 million in revenues and be slightly accretive to EMCOR's diluted earnings per share, after transaction expenses of approximately $6 million. For 2012 and annual periods thereafter, USM is expected to be accretive to EMCOR's diluted earnings per share and generate operating income margin, excluding intangible amortization expenses, in excess of EMCOR's historical peak operating income margins.

    Operating efficiencies are expected to be generated from the combination of USM and EMCOR's facilities businesses, resulting in targeted annualized expense reductions of approximately $5 - $6 million over the next two years.

    About Transfield Services:
    Transfield Services delivers essential services to key industries in the resources and industrial, property and infrastructure sectors. A leading global provider of operations, maintenance, and asset and project management services, Transfield Services has more than 28,000 employees in Australia, New Zealand, the United States, Canada, the United Arab Emirates, Qatar, India, Malaysia, Chile and New Caledonia. Transfield Services Limited is listed on the Australian Securities Exchange.

    EMCOR Announces Agreement to Acquire USM Services Holdings
    EMCOR Group, Inc. is a Fortune 500 worldwide leader in mechanical and electrical construction services, energy infrastructure and facilities services. This press release and other press releases may be viewed at the Company's Web site at www.emcorgroup.com.
  2. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    Anyone else catch this?
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Sounds like a pay cut.
  4. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 12,174

    seen this earlier....a new low baller?
  5. csi.northcoast

    csi.northcoast Senior Member
    Messages: 320

    i will bit my tongue on the many ways i could go with this post... but if someone feel they can do the job and take on the "liability risk" for the money they want to pay and wait for the money to be paid......then go for it...

    they are only ALLOWED to lowball if someone agrees to do the work for the price
  6. northernsweeper

    northernsweeper Senior Member
    Messages: 397

    So now the furnace rapair truck will have a plow. Same crap,different name.
  7. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    The 5 to 6 million cut in annualized expense reductions, sound a whole lot like more contractors aren't going to get paid.
  8. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    I think this might be a good thing, unlike USM this company provides a service that is not very forgiving so maybe they well have the same additude towards exterior maintenance.
  9. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    At least theyre American. GO USA, buy American! ussmileyflag
  10. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    time will tell.
  11. snowman5313

    snowman5313 Member
    Messages: 86

    I'm with hoskm01...If your going to get screwed get screwed by an American.
  12. snowbrothers101

    snowbrothers101 Senior Member
    Messages: 154

  13. Kramer

    Kramer Senior Member
    Messages: 386

    This is the amazing part to me.

    You guys do all the work, you don't get paid, you take all the liability and after several years USM gets $200 million off your sweat. Most of you on here have been complaining for years about getting screwed in several ways. Then you come on plowsite almost begging the next guy not to screw you. "Maybe it will be better now".

    Then to justify it all, you say that at least its an American compnay now.

    Open your eyes gentlemen.

    How much of the $200 million did you get? Now go fix your truck, forget about the thousands they owe you, make sure you're in court on time to plead your case. Don't forget to wake up at 3am to make sure you're on time to wreck your truck in the next big storm.
    When you're done, call the new company hotline to ask why you haven't been paid for the last three storms or they held back money cause you didn't cross the last T.

    You people are gluttons for punishment. You are giving away this industry one contract at a time and you're content in begging these people for work. Look ahead 5 years...if you just want to beg for work go to a local plowguy who needs a driver. Stop pretending you're in business. These companies have no work without you...why can you not understand this??
  14. snowbrothers101

    snowbrothers101 Senior Member
    Messages: 154

    $200 million? Read the income statements that Transfield put out. They bought USM (and the components that made up USM, including Whelans and Horizon) for $485 million. They sold for $225 million. Transfield lost over $250 million in 5 years just on the sale price (not to mention year after year losses on bad debt and load repayments on the original purchase. As the article states, this was Transfield's worst acquisition in their history. Losing over $200 million in revenue in the last 120 days didn't help either. This is not a bad thing for us. Emcor has a very solid reputation and things can't get any worse at USM as it relates to us vendors.
  15. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475


    No one is walking around with 200 milskies in their pocket.

    The change goes on...
  16. tjlands

    tjlands Senior Member
    Messages: 579

    Instead of some buffoons in the US you will now deal with a bunch of cronies surrounded by Roos on the other side of the planet.

    sounds about right
  17. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    I think you've got it backwards there Chief.
  18. tjlands

    tjlands Senior Member
    Messages: 579

    nope got it right
  19. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    UMMM, you know the company that is SELLING USM is Australian and the company that is BUYING USM is American, right.
  20. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Nope, nope. Buckwheat has it right. No more Roos.