EMCOR Group Makes an Acquisition

EMCOR Group is growing the old-fashioned way -- with the purchase of outside assets. The company announced that it will acquire the privately held RepconStrickland, a Texas-based firm it describes as "a leading provider of recurring turnaround and specialty services to the North American refinery and petrochemical markets."

The price is roughly $455 million in cash. Most of this will land in the coffers of RepconStrickland's majority shareholder, an affiliate of ArcLight Capital Partners. That price very possibly represents a premium, since ArcLight says that it "has a proven track record of delivering superior returns across the energy industry value chain.

According to EMCOR Group, RepconStrickland took in revenues of around $400 million in 2012. EMCOR Group anticipates that the transaction will close early next month.

The article EMCOR Group Makes an Acquisition originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in EMCOR Group, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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