Limbach Holdings Acquires Kent Island Mechanical

Limbach Holdings, Inc. (Nasdaq: LMB), a leading provider of building systems solutions, announced its acquisition of Kent Island Mechanical, LLC (KIM) for an initial purchase price of $15 million. Based in Laurel, Maryland, KIM serves the Greater Washington, D.C. area, offering specialized services in maintaining complex building systems.

Key Highlights of the Acquisition:

  • The acquisition enhances Limbach’s design, engineering, maintenance, and emergency mechanical solutions in key sectors such as data centers, healthcare, life sciences, and higher education.
  • KIM’s business model and workforce complement Limbach’s existing operations in the Mid-Atlantic, advancing Limbach’s strategy to expand Owner Direct Relationships (ODR) with mission-critical facility owners.
  • KIM is expected to contribute around $30 million in revenue and over $4 million in EBITDA annually by 2025.
  • The $15 million acquisition was funded through available cash, with an additional $5 million in potential performance-based earn-outs over the next two years.

Management Remarks:

Michael McCann, President and CEO of Limbach, expressed excitement about integrating KIM, praising its reputation for excellence and strong customer relationships. McCann emphasized the acquisition’s alignment with Limbach’s growth strategy and noted the anticipated synergies that will unlock value by 2025. He also highlighted that Limbach has completed over $50 million in strategic acquisitions without issuing stock.

KIM’s founder, Mark Bowen, reflected on the transition, expressing confidence in Limbach’s ability to carry forward the legacy of the company he built, while noting that Director of Operations Kyle Benjamin will join Limbach’s leadership team for the Mid-Atlantic region.

About Kent Island Mechanical

Founded in 2002 by President Mark Bowen, KIM is a leading provider of building systems solutions in the Greater Washington, D.C. metro region, including suburban Maryland and Northern Virginia. KIM excels in designing, engineering, installing, servicing, and maintaining mechanical, HVAC and plumbing systems for complex facilities. Under the leadership of Director of Operations Kyle Benjamin, KIM has become a trusted partner for facility owners requiring a solutions-oriented approach to constructing and maintaining complex building systems.

About Limbach

Limbach is a building systems solution firm that partners with building owners and facilities managers who have mission critical mechanical (heating, ventilation and air conditioning), electrical and plumbing infrastructure. We strive to be an indispensable partner to our customers by providing services that are essential to the operation of their businesses. We work with building owners primarily in six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment. We have more than 1,300 team members in 19 offices across the eastern United States. Our team members uniquely combine engineering expertise with field installation skills to provide custom solutions that leverage our full life-cycle capabilities, which allows us to address both the operational and capital projects needs of our customers.

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