Emcor shares rise after RepconStrickland deal

Emcor shares jump on plans to buy energy services co. RepconStrickland in $455 million deal

Associated Press

NORWALK, Conn. (AP) -- Emcor Group Inc.'s shares rose Tuesday, a day after the company said it expects that the planned acquisition of an energy services company, RepconStrickland, will add to its profit this year.

THE SPARK: Emcor said Monday that it is buying RepconStrickland in a deal valued at $455 million.

THE BIG PICTURE: Emcor, based in Norwalk, Conn., is a construction and maintenance company serving industries including energy and health care. The company wants to build its industrial and energy businesses, which it says are attractive markets for growth.

RepconStrickland is a privately held Texas company that provides services for the refinery and petrochemical industry, such as shutdowns, overhauls and emergency repair. It had about $400 million in revenue during 2012.

The transaction is expected to close in early July. Emcor estimates the deal will add 10 cents per share to its 2013 earnings, excluding deal costs, and increase its earnings further in 2014. The company earned $2.16 per share last year.

Emcor expects transaction costs will run between $6 million and $7 million.

SHARE ACTION: Shares of Emcor rose $2.05, or 5.3 percent, to $40.77 in afternoon trading. The stock had gained 12 percent in 2013. It's near a 52-week high of $42.69, which was reached in March.

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