NORWALK, CONN., October 14, 2010 – EMCOR Group, Inc. (NYSE: EME) today announced that it has acquired Harry Pepper & Associates, Inc. (Pepper), a privately held government infrastructure project company headquartered in Jacksonville, Florida. Terms of the transaction were not disclosed.
Pepper, with 2010 estimated revenues of approximately $100 million, is a leading infrastructure company offering diversified prime contracting services to Federal and State government agencies and local municipalities. Having been in business since 1918, Pepper has a strong relationship with clients such as the Department of the Navy, the Army Corps of Engineers, the Department of the Air Force, the U.S. Marine Corps., and various municipalities, townships and cities in the state of Florida.
With an estimated current backlog of $150 million, Pepper’s expertise in large complex infrastructure and building projects includes, civil engineering, excavation and land clearing, steel erection and concrete forming, and self-performed mechanical services. Projects include large water, wastewater and storm water treatment facilities, dock repair, levee and canal restoration, pumping stations, as well as other infrastructure and building facilities.
Commenting on the announcement, Tony Guzzi, President and Chief Operating Officer of EMCOR Group, stated, “We are pleased that Pepper has joined EMCOR. Pepper has leading positions with large government agencies, is a go-to water infrastructure provider for the State of Florida, and will be a valuable addition to EMCOR’s government services capabilities.”
David L. Pepper, President of Pepper, said, “We are delighted to join with EMCOR, an industry leader in specialty construction, operational and maintenance services and energy infrastructure. Pepper’s 90+ year tradition of providing comprehensive infrastructure services to its customers aligns with EMCOR’s strategy of increasing its portfolio of services to government agencies. We are excited about our future prospects as part of EMCOR’s government group and EMCOR in total.”
Mr. Guzzi continued, “Our government clients are asking us to do more for them, and adding Pepper’s capabilities to our skill sets allows us to differentiate ourselves from other government service providers. With the addition of Pepper, EMCOR’s government services group has increased its bandwidth to offer the entire gamut of both construction and operational and maintenance services. Simply put, our government group’s management team has gotten stronger while its array of services has expanded—a very powerful combination.”
About EMCOR Group, Inc.
A Fortune 500 company with estimated 2010 revenues of $5.0 billion, EMCOR Group, Inc. (NYSE: EME) is a global leader in mechanical and electrical construction, energy infrastructure, and facilities services. A leading provider of critical infrastructure systems, EMCOR gives life to new structures and sustains life in existing ones by its planning, installing, operating, maintaining, and protecting the sophisticated and dynamic systems that create facility environments---such as electrical, mechanical, lighting, air conditioning, heating, security, fire protection, and power generation systems---in virtually every sector of the economy and for a diverse range of businesses, organizations and government. EMCOR represents a rare combination of broad reach with local execution, combining the strength of an industry leader with the knowledge and care of 170 locations. The 26,000 skilled employees of EMCOR have made the company, in the eyes of leading business publications, amongst the “World’s Most Admired” and “Best Managed”. EMCOR’s diversity---in terms of the services it provides, the industries it serves and the geography it spans---has enabled it to create a stable platform for sustained results. The Company’s strong financial position has enabled it to attract and retain among the best local and regional talent, to undertake and complete the most ambitious projects, and to redefine and shape the future of the construction and facilities services industry. Additional information on EMCOR can be found at www.EMCORGroup.com.
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 2009 Form 10-K, its Form 10-Q for the second quarter ended June 30, 2010, 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.
