ABM Industries Acquires The Linc Group, LLC
ABM Industries Acquires The Linc Group, LLC
Company Expects to Join Fortune 500
ABM, which operates through its subsidiaries, is a leading
"This is a game changer for ABM's business," said
Slipsager continued: "With this move, we are in an outstanding position
to deliver leading client solutions to meet the global drive towards
green buildings and energy efficiency. We aim to be the provider of
choice for those clients. This transaction also brings us into the
TLG Chairman, President and CEO
"The integrated facilities services sector offers substantial growth opportunities driven by increasing demand for efficiency and the growing awareness that power generating resources are finite," said Price. "These opportunities include: the growing use of third-party facilities services vendors; the increasing focus on ‘green buildings' and energy efficiency; the convergence of energy and communications technology; international expansion; and the drive for cost-effective facilities management service for large-scale facilities. Leveraging our experience with mission-critical facilities, customized solutions and advanced technologies, we are well-positioned to capitalize on these market trends. Joining with ABM provides excellent new opportunities for our clients and employees and our team is excited about the opportunity to take what we have built to a new level under the auspices of Henrik and ABM."
Slipsager added, "Our companies are highly complementary. The combined company will add TLG's offerings to ABM's existing vertical and geographic markets. By leveraging the existing businesses of both TLG and ABM, we will be able to offer clients truly integrated facility services and turn-key, in-house solutions. We're particularly excited about the advantages that TLG brings to the table: existing relationships and extensive work in the government sector, expanding international operations, and technology-oriented capabilities, including highly complicated energy efficiency work and retrofitting."
Geographically, TLG's operational footprint spans more than one billion square feet over more than 25,000 facilities, including some international presence across six continents. In the U.S., it operates in 46 states.
Combining the two businesses will generate synergies for ABM. The expected synergies will only have partial impact in fiscal year 2011 and full impact in 2012. Therefore, ABM expects the deal to be slightly accretive to fiscal year 2011 earnings and further accretive in 2012.
With this transaction, ABM is expected to join the 2011 ranks of the Fortune 500.
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that set forth
management's anticipated results based on management's current plans and
assumptions. Any number of factors could cause the Company's
actual results to differ materially from those anticipated. Factors that
could cause actual results to differ include but are not limited to
the following: (1) we may not be able to achieve the expected growth in
revenues relating to the combination our business with the business of
The Linc Group LLC TLG) as we may not be able to retain existing
customers or generate new business anticipated from the expected
benefits of the acquisition; (2) the acquisition of TLC may divert
management's time and focus from operating our business to acquisition
integration; (3) we may not be able to retain key members of the
TLG management team which could negatively impact our ability to
maintain or grow the acquired business; (4) a significant portion
of TLG's revenues are generated by government contracts and could be
negatively impacted by reduced government spending on outsourced
services as well as payment delays; (5) a significant portion of
TLG's revenues are generated from international operations and are
subject to political risk and changes in socio-economic
conditions, laws and regulations, including labor, and monetary and
fiscal policies, which could negatively impact our ability to operate or
grow our business in the international arena; (6) the TLG acquisition
significantly increases our global presence, thereby increasing our
exposure to foreign currency risks and foreign exchange exposure; and
(7) we may encounter material unanticipated costs related to the TLG
acquisition. Additional information regarding other risks and
uncertainties the Company faces is contained in the Company's Annual
Report on Form 10-K for the year ended
News Provided by Acquire Media
Data Provided by Refinitiv. Minimum 15 minutes delayed.