Limbach Holdings, Inc. Acquires Chattanooga, TN – Based Specialty Industrial Contractor ACME Industrial Piping, LLC

Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced the closing of the acquisition of Chattanooga, TN-based specialty industrial contractor ACME Industrial Piping, LLC (“ACME”) for an enterprise value of $5 million in an all-cash transaction.

Transaction Highlights

• ACME specializes in performing industrial maintenance, capital project work, and emergency services for specialty chemical and manufacturing clients, and is a leading mechanical solutions provider for hydroelectric producers.

• ACME’s business model aligns well with Limbach’s emphasis on expanding the Owner Direct Relationships (“ODR”) segment, including significant owner-direct exposure and an indispensable ‘on-premise’ presence at a number of Fortune 500 caliber customers.

• ACME expects to contribute on average $10 million in revenue and in excess of $1 million in EBITDA annually.

• Total consideration paid by Limbach at closing was $5 million (subject to typical working capital adjustments), sourced from available cash, with performance-based, contingent earn-outs totaling $2.5 million potentially being paid out as part of the transaction over the next two years.

Background on ACME

Founded in 1968, ACME serves industrial customers in the greater Chattanooga, TN market and hydroelectric customers nationally, with a concentration in the Southeast region. ACME provides mechanical construction, process piping and pipe fabrication capabilities, with an emphasis on delivering customized, quick response solutions for owners of critical process facilities. ACME is recognized nationally as “The EMTs of the Industrial Market.”

Management Comments

Michael McCann, Limbach’s President and Chief Executive Officer, said, “We’re excited to welcome Jim Bailey and the ACME team. We believe ACME is a perfect fit with Limbach’s dynamic mechanical solutions platform, both operationally and culturally. ACME aligns well with our ODR segment, with a focus on performing mission critical work for customers that value immediate access to a trusted partner to help manage and optimize their facility assets. ACME has a number of Fortune 500 industrial clients as customers. We are excited to expand those relationships and to leverage the rest of Limbach’s capabilities across an entirely new customer base. Additionally, we’re excited by ACME’s niche as a market leader in maintaining and servicing hydroelectric infrastructure. This is a new niche for Limbach, which we intend to expand and leverage further. With the transaction closing mid-year, we expect that ACME’s impact on Limbach’s revenue and earnings in 2023 will be immaterial. Our immediate focus will be on integration and driving revenue synergies that we believe will add meaningfully to 2024 results and beyond. More generally, we continue to view the acquisition environment favorably, and remain committed to executing additional transactions that meet our acquisition criteria.”