Comfort Systems USA Announces Acquisition10.02.2020 in News
Comfort Systems USA, a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, today announced that it has entered into a definitive agreement to acquire the Starr Electric Company, Inc. (“Starr”) headquartered in Greensboro, North Carolina.
Starr was founded in 1928 and provides electrical installation across North Carolina. Starr engages in a broad range of electrical contracting projects and services, and has offices in Charlotte, Raleigh, Greensboro, and Fayetteville, North Carolina and in Columbia, South Carolina. Starr also participates in modular and off-site construction services and has a long-standing partnership with Environmental Air Systems, a Comfort Systems USA subsidiary that includes a leading modular construction and off-site construction offering. Initially Starr is expected to contribute annualized revenues of approximately $90 million to $100 million, and earnings before interest, taxes, depreciation and amortization of $5 million to $6 million. In light of the required amortization expense related to intangibles and other costs associated with the transaction, the acquisition is expected to make a neutral to slightly accretive contribution to earnings per share in 2020 and 2021.
Brian Lane, Comfort Systems USA’s Chief Executive Officer, commented, “We are extremely happy to announce that Starr and its extraordinary team of professionals have joined Comfort Systems USA. Starr is an important force in electrical contracting and related services across North Carolina, with deep experience in the industrial, medical and educational sectors. In addition to the world class construction offering that Starr brings, this investment will allow us to further develop our modular construction offering by adding electrical rooms and other assemblies to our off-site construction business in High Point, North Carolina. For decades Starr has worked with us in that business, and Starr has resources and expertise that will be pivotal to improving our modular solutions for industrial, institutional and commercial customers.”
Harley Garrison, Chief Executive Officer of Starr, commented, “We chose to join Comfort Systems USA because we have seen first-hand through our long association that Comfort is committed to its employees and to the legacy that they will now share with us. We believe that our partnership with Comfort Systems USA is a fantastic opportunity to provide training, security and growth for our employees and all of our stakeholders. We believe that Starr and Comfort Systems USA have a bright future together.”
Brian Lane concluded, “Starr brings extraordinary capabilities and an established and excellent reputation in one of our nation’s most vibrant markets. Given the strong leadership at all levels of the company, we believe that Starr will continue to grow and improve. We could not be happier that the Starr Electric Company is joining Comfort Systems USA.”
Comfort Systems USA® is a premier provider of business solutions addressing workplace comfort, with 134 locations in 115 cities around the nation. For more information, visit the Company’s website at www.comfortsystemsusa.com.