Limbach Announces Acquisition of Pioneer Power
Limbach Holdings, Inc. (Nasdaq: LMB), a leading provider of integrated building systems solutions with a focus on mechanical, electrical, and plumbing (MEP) infrastructure for mission-critical facilities, has officially announced its acquisition of Pioneer Power, Inc. (PPI) for $66.1 million. This strategic purchase marks another significant step in Limbach’s ongoing efforts to expand its national presence, diversify its capabilities, and strengthen its position in key industrial and institutional markets across the United States.
The acquisition was financed through a combination of available cash and borrowings under Limbach’s recently expanded revolving credit facility. The deal is expected to immediately bolster the company’s service offerings and customer base, while laying a strong foundation for future organic and inorganic growth.
Pioneer Power: A Proven Leader in Industrial Mechanical Services
Founded in 1947, Pioneer Power has operated for over 75 years, developing a strong reputation as a trusted provider of industrial mechanical solutions across the Upper Midwest, particularly within the Greater Twin Cities region. Prior to the acquisition, the company was 100% employee-owned under an ESOP (Employee Stock Ownership Plan) structure, reflecting a deeply rooted commitment to employee engagement and long-term value creation.
Pioneer Power specializes in mechanical services tailored to the needs of mission-critical facilities across several industries, including healthcare, energy utilities, food processing, and oil refining. With a team of highly skilled professionals and decades of experience, PPI provides a wide range of services, including:
- Complex shutdowns and turnarounds
- Capital improvement projects
- Facility expansions
- Renovation and retrofit services
- Ongoing industrial maintenance
The company’s expertise lies in its ability to tackle technically demanding projects that involve sophisticated industrial piping, HVAC, and plumbing systems. This capability aligns seamlessly with Limbach’s broader strategic goals and complements its previous acquisition of Consolidated Mechanical.
Strengthening Limbach’s Strategic Shift Toward Owner Direct Relationships (ODR)
A core driver behind the acquisition is Pioneer Power’s strong orientation toward Owner Direct Relationships (ODR). The majority of PPI’s revenue is derived from long-term, relationship-based service agreements with building owners, many of which are structured around time and materials contracts and small capital projects. This model supports ongoing maintenance, renovation, and infrastructure optimization, which are critical for facilities requiring continuous uptime and operational efficiency.
Limbach has increasingly pivoted toward this ODR model as part of its strategic evolution. Unlike traditional contracting that focuses heavily on new construction, ODR relationships offer higher-margin, recurring revenue opportunities that support long-term client engagement and operational predictability.
By integrating Pioneer Power’s operations, Limbach expects to deepen its ODR capabilities and deliver even greater value to mission-critical clients who require reliable, scalable, and responsive mechanical services.
Financial and Operational Impact
While Limbach has not yet updated its full-year 2025 financial outlook to reflect the acquisition, the company confirmed that Pioneer Power is expected to generate an annualized revenue of approximately $120 million and adjusted EBITDA of roughly $10 million starting in 2026. These figures represent meaningful additions to Limbach’s overall financial performance and support the company’s long-term growth strategy.
The immediate focus post-acquisition will be on operational integration and synergy realization. Limbach aims to apply its proven playbook of value creation strategies—such as optimizing project margins, standardizing best practices, and leveraging cross-market capabilities—to unlock additional upside from the transaction.
The purchase price includes a working capital adjustment mechanism and encompasses approximately $4.6 million in owned real estate, including Pioneer Power’s headquarters, warehouse, and fabrication facility. These facilities are vital operational assets that will continue to support Pioneer Power’s field service delivery and prefabrication capabilities.
Expanded Credit Facility and Prudent Financial Management
In conjunction with the acquisition, Limbach entered into an amendment of its credit agreement with Wheaton Bank & Trust Company, N.A., a subsidiary of Wintrust Financial Corporation. The amendment increased the size of the company’s revolving credit facility from $50 million to $100 million, providing added liquidity and flexibility to support both near-term integration efforts and longer-term strategic initiatives.
Notably, Limbach has now invested more than $150 million in strategic acquisitions since becoming a publicly traded company—all without issuing any stock. This disciplined financial strategy has allowed the company to pursue aggressive growth while preserving shareholder value. By funding acquisitions through a mix of cash reserves and balance sheet optimization, Limbach has maintained a low-leverage profile and sustained its capacity for future investments in both organic and acquisition-driven initiatives.
Executive Perspectives
Michael McCann, President and Chief Executive Officer of Limbach, expressed his enthusiasm for the acquisition and the opportunities it presents:
“We are excited to welcome the Pioneer Power team to the Limbach family. This acquisition further expands our footprint in the core Midwest region and extends our reach into new geographic markets in the Upper Midwest. Pioneer Power’s expertise in time-and-materials contracts and small capital projects aligns perfectly with our strategic shift toward prioritizing Owner Direct Relationships. Their capabilities enhance our ability to serve large-scale facilities with complex mechanical system needs.”
McCann also highlighted the cultural alignment between the two companies, particularly in their shared approach to risk management, quality delivery, and client-focused service.
“We’re gaining not just a business, but a highly skilled and experienced team with a culture that mirrors our own. Our goal now is to unlock value by applying our proven strategies to improve margins, grow share, and deepen relationships across both companies’ client portfolios.”
Larry Stevens, Jr., President of Pioneer Power, echoed this sentiment and expressed optimism about the road ahead:
“Becoming part of Limbach gives us the resources and platform to take our business to the next level. Our customers will benefit from expanded capabilities and reach, while our employees will have access to broader opportunities for career development and innovation. We are proud to join forces with a company that shares our values and vision.”
The acquisition of Pioneer Power marks a significant milestone in Limbach’s long-term strategy to build a national platform of industrial and institutional mechanical services rooted in reliability, customer trust, and technical excellence. By bringing Pioneer Power into the fold, Limbach not only enhances its geographic coverage and service capabilities, but also strengthens its position as a partner of choice for building owners seeking to maintain and upgrade mission-critical infrastructure.
As Limbach continues to scale, investors and stakeholders can expect to see an increased focus on ODR growth, margin enhancement, and disciplined capital allocation. The integration of Pioneer Power is set to play a pivotal role in achieving these objectives as the company enters its next phase of expansion.
An updated outlook for fiscal 2025, reflecting the impact of this acquisition, is expected to be provided in August 2025 when Limbach reports its second-quarter financial results.
