Comfort Systems USA Inc. (FIX) has agreed to acquire Amteck. Comfort Systems provides commercial, industrial, and institutional heating, ventilation, air conditioning, and electrical contracting services. Amteck provides electrical contracting solutions and services.
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The acquisition is expected to contribute annualized revenue of $175 million to $200 million and EBITDA of $14 million to $17 million to Comfort Systems. During the first 12 to 18 months following the acquisition, the impact on Comfort Systems’ bottom line is expected to be neutral to slightly accretive. (See Comfort Systems stock chart on TipRanks)
Comfort Systems CEO Brian Lane said, “Amteck brings world-class capabilities in complex projects, deep customer relationships, design-build competence, and notable opportunities for long-term synergy in our electrical segment.”
Recently, D.A. Davidson analyst Brent Thielman reiterated a Hold rating on the stock and increased the price target to $75 (4.8% potential downside) from $60.
The analyst noted Comfort Systems’ Q1 performance above expectations coupled with “Solid” margins but cited slower growth in the short-term and a frothy stock valuation as reasons for a Hold rating.
Shares are up 98.5% over the past year.
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