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ABM Industries (ABM) to Snap Up Able Services for $830M
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ABM Industries, Inc. (ABM - Free Report) announced that it has inked a deal to acquire a facilities services company, Able Services, for $830 million in cash. Subject to approval under the Hart-Scott-Rodino Antitrust Act and other closing conditions, the deal is anticipated to complete by September end.
Headquartered in San Francisco, Able Services is one of the leading family-owned providers of building maintenance, engineering and facility operations in the United States. The company was founded in 1926.
So far this year, shares of ABM Industries have gained 28.7% against 0.5% decline of the industry it belongs to.
Image Source: Zacks Investment Research
How Will ABM Industries Benefit?
The acquisition is expected to boost the company’s adjusted earnings per share immediately after closing. The company is also hopeful of witnessing almost $30-$40 million in cost synergies, post closure of the deal.
The buyout is also expected to increase ABM Industries’ engineering and technical services revenues to almost $2 billion, and also expand the company’s sustainability and energy efficiency offerings. Inclusion of Able’s janitorial services should also strengthen ABM Industries’ janitorial services business and provide growth opportunities to expand EnhancedClean across broader footprint.
Scott Salmirs, president and chief executive officer of ABM Industries, stated, “This acquisition is fully aligned with the strategic plan we have developed to accelerate our revenue growth and margin expansion in the coming years. Able represents an excellent strategic and cultural fit for us, adding to our scale in engineering and janitorial services, which represent priority growth areas for ABM over the next five years. Additionally, Able’s commitment to delivering outstanding service to its clients while engaging with its team members fits well with ABM’s culture and values. Together, we will build upon our respective strengths and shared values as we provide a broader array of services to an expanded client roster.”
Considering the increasing demand for environmentally responsible solutions, the latest deal is expected to boost ABM Industries’ competitive position in the market.
Image: Shutterstock
ABM Industries (ABM) to Snap Up Able Services for $830M
ABM Industries, Inc. (ABM - Free Report) announced that it has inked a deal to acquire a facilities services company, Able Services, for $830 million in cash. Subject to approval under the Hart-Scott-Rodino Antitrust Act and other closing conditions, the deal is anticipated to complete by September end.
Headquartered in San Francisco, Able Services is one of the leading family-owned providers of building maintenance, engineering and facility operations in the United States. The company was founded in 1926.
So far this year, shares of ABM Industries have gained 28.7% against 0.5% decline of the industry it belongs to.
Image Source: Zacks Investment Research
How Will ABM Industries Benefit?
The acquisition is expected to boost the company’s adjusted earnings per share immediately after closing. The company is also hopeful of witnessing almost $30-$40 million in cost synergies, post closure of the deal.
The buyout is also expected to increase ABM Industries’ engineering and technical services revenues to almost $2 billion, and also expand the company’s sustainability and energy efficiency offerings. Inclusion of Able’s janitorial services should also strengthen ABM Industries’ janitorial services business and provide growth opportunities to expand EnhancedClean across broader footprint.
Scott Salmirs, president and chief executive officer of ABM Industries, stated, “This acquisition is fully aligned with the strategic plan we have developed to accelerate our revenue growth and margin expansion in the coming years. Able represents an excellent strategic and cultural fit for us, adding to our scale in engineering and janitorial services, which represent priority growth areas for ABM over the next five years. Additionally, Able’s commitment to delivering outstanding service to its clients while engaging with its team members fits well with ABM’s culture and values. Together, we will build upon our respective strengths and shared values as we provide a broader array of services to an expanded client roster.”
Considering the increasing demand for environmentally responsible solutions, the latest deal is expected to boost ABM Industries’ competitive position in the market.
Zacks Rank and Stocks to Consider
ABM Industries currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Equifax (EFX - Free Report) , BGSF Inc. (BGSF - Free Report) and Avis Budget (CAR - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Equifax, BGSF and Avis Budget is 15.2%, 20% and 57.2%, respectively.