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ABM Industries (ABM) Announces the Acquisition of RavenVolt

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ABM Industries Incorporated (ABM - Free Report) announced yesterday that it has acquired advanced turn-key microgrid systems provider RavenVolt.

Alpharetta, GA-based RavenVolt designs and installs customized microgrid solutions such as generators and switchgears that provide modular and redundant power.

Financial Terms

The maximum purchase price of $450 million includes $170 million in cash at closing and a $280 million aggregate post-closing earn-out consideration, payable in cash in 2024, 2025, and 2026, based on RavenVolt business accomplishing certain financial metrics in 2023, 2024 and 2025. RavenVolt will have to produce a cumulative EBITDA of $150 million from 2023 through 2025 to achieve the earn-out of $280 million.

ABM’s Platter

The acquisition is a part of ABM’s ELEVATE strategy that focuses on expanding the company’s footprint in potential geographies and end markets through strategic acquisitions.

RavenVolt’s addition will help in expanding ABM’s Technical Solutions service offerings, strengthening its foothold in EV infrastructure, power and bundled energy solutions markets. RavenVolt will also boost ABM’S eMobility business as a provider of customized power solutions in facilities that require additional power generation capacity to support EV charging.

Mark Hawkinson, President of ABM’s Technical Solutions group, said, “Besides the clear synergies with our eMobility and Power businesses, RavenVolt also increases our opportunities in Manufacturing & Distribution, Education, and through our Bundled Energy Solutions offerings. We also see opportunities to cross-sell core ABM services to existing RavenVolt clients, especially for ongoing engineering and maintenance of installed systems.”

ABM shares have gained 18.7% year to date, significantly outperforming the 7.1% rise in the industry it belongs to.

Zacks Rank and Stocks to Consider

ABM currently carries a Zacks Rank #3 (Hold).

Investors interestedin the broader Zacks Business Services sector can also consider stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report)  and CRA International, Inc. (CRAI - Free Report) .

Avis Budget sports a Zacks Rank #1 (Strong Buy), at present. CAR has an earnings growth rate of 108.4% for the year 2022. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.

CRA International currentlysports a Zacks Rank #1. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.

Genpact carries a Zacks Rank of 2 (Buy) at present. G has a long-term earnings growth expectation of 12.1%.

Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.

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