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Acquisitions and Dispositions Of Businesses | 9 Months Ended
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Sep. 30, 2025
Business Combination [Abstract] |
Acquisitions Of Businesses | Acquisitions and Dispositions of Businesses Acquisitions are accounted for utilizing the acquisition method of accounting and the prices paid for them are allocated to their respective assets and liabilities based upon the estimated fair value of such assets and liabilities at the dates of their respective acquisition by us. On February 3, 2025, we completed the acquisition of Miller Electric Company (“Miller Electric”), a leading electrical contractor that operates predominantly across the Southeastern United States. Under the terms of the transaction, we acquired 100% of Miller Electric's capital stock for total cash consideration of approximately $868.6 million. This acquisition complements our existing electrical construction capabilities in high-growth end markets and expands our geographic presence. The results of operations of Miller Electric have been included within our United States electrical construction and facilities services segment. For the period from February 3, 2025 to September 30, 2025, such acquisition contributed revenues of $794.4 million and operating income of $21.2 million, net of amortization expense attributable to identifiable intangible assets of $29.4 million. During the first quarter of 2025, we incurred $9.4 million of transaction related costs in connection with this acquisition. These expenses were included in "Selling, general and administrative expenses" in the accompanying Consolidated Statement of Operations. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):
Assets: |  |
Cash and cash equivalents |  | $ | 18,394 |
Accounts receivable (1) |  | 222,355 |
Contract assets |  | 23,120 |
Inventories |  | 329 |
Prepaid expenses and other |  | 7,284 |
Property, plant, and equipment |  | 10,462 |
Operating lease right-of-use assets |  | 30,345 |
Goodwill (2) |  | 318,576 |
Identifiable intangible assets |  | 475,000 |
Other assets |  | 302 |
Total assets acquired |  | $ | 1,106,167 |
_________________________ (1)The fair value of accounts receivable acquired was $222.4 million, with the gross contractual amount being $224.4 million. We expect $2.0 million to be uncollectible. (2)Goodwill is calculated as the excess of the consideration transferred over the fair value of the net assets acquired and represents the projected future economic benefits from this strategic acquisition. NOTE 4 - Acquisitions and Dispositions of Businesses (Continued)
Liabilities: |  |
Accounts payable |  | $ | 68,147 |
Contract liabilities |  | 104,595 |
Accrued payroll and benefits |  | 9,838 |
Other accrued expenses and liabilities |  | 22,746 |
Operating lease liabilities, current |  | 2,573 |
Operating lease liabilities, long-term |  | 27,771 |
Other long-term obligations |  | 991 |
Total liabilities assumed |  | 236,661 |
Noncontrolling interests |  | 934 |
Net assets acquired |  | $ | 868,572 |
The following table summarizes the preliminary fair values of identifiable intangible assets (in thousands) and their estimated useful lives (in years). Refer to Note 8 - Fair Value Measurements of the notes to consolidated financial statements for additional information on the valuation methodologies utilized to determine fair value.
Miller Electric |  | Preliminary Fair Value |  | Estimated Useful Life
Customer relationships |  | $ | 280,000 |  |  | 16.0
Contract backlog |  | 40,000 |  |  | 1.5
Total intangible assets subject to amortization |  | 320,000 |  |  | 14.2
Trade name |  | 155,000 |  |  | Indefinite
Total identifiable intangible assets |  | $ | 475,000 |  |  |
In addition to Miller Electric, during the first nine months of 2025, we acquired five companies, for upfront consideration of $50.9 million, inclusive of customary working capital adjustments. These acquisitions are comprised of: (a) three companies that have been included in our United States mechanical construction and facilities services segment, including: (i) a company in the Midwestern region of the United States that provides building automation controls and solutions to commercial, institutional, and industrial customers, (ii) a company that adds capabilities to our national fire protection offerings, and (iii) a provider of mechanical construction and maintenance services in the Western region of the United States, and (b) two companies that have been included in our United States building services segment, which enhance our building automation and controls or energy efficiency offerings. In connection with these acquisitions, we acquired working capital of $5.0 million and other net assets of $2.8 million and have preliminarily ascribed $22.4 million to goodwill and $20.7 million to identifiable intangible assets. We expect that all of the goodwill and identifiable intangible assets acquired in connection with the acquisitions we completed during the first nine months of 2025 will be deductible for tax purposes. The purchase price allocations for the businesses acquired in 2025 are preliminary and subject to change during their respective measurement periods as we finalize asset valuations and certain tax matters, among other items. The finalization of these items may result in changes in the valuation of assets acquired or liabilities assumed. During calendar year 2024, we acquired seven companies for upfront consideration of $231.1 million, inclusive of customary working capital adjustments. These acquisitions are comprised of: (a) an electrical contractor in the Southeast region of the United States, that has been included in our United States electrical construction and facilities services segment, (b) two companies that have been included within our United States mechanical construction and facilities services segment, including: (i) a leading plumbing services provider in the Southeast region of the United States and (ii) a full service provider of mechanical construction and maintenance services in Central Texas, (c) three companies that have been included in our United States building services segment, including: (i) a provider of building automation and controls solutions in the Northeast region of the United States, (ii) a mechanical services company in the Western region of the United States, and (iii) a mechanical services company in the Eastern region of the United States, and (d) an instrumentation and electrical contractor, that has been included in our United States industrial services segment, which provides electrical, automation, digital integration, and fabrication services to various energy sector and process equipment customers. In connection with these acquisitions, we acquired working capital of $29.0 million and other net assets of $1.1 million and have ascribed $61.9 million to goodwill and $139.1 million to identifiable intangible assets.
Dispositions of Businesses | On September 22, 2025, we entered into a definitive agreement to sell EMCOR (UK) Limited and EMCOR Group (UK) plc, which collectively represent our United Kingdom building services segment. The transaction is expected to close by the end of 2025, subject to U.K. regulatory approval. In connection with this pending sale, we determined that certain assets and liabilities met the criteria for classification as held for sale. The fair value of these net assets, less the costs to sell, exceed the carrying value and therefore, no loss was recognized during the nine months ended September 30, 2025. The following table summarizes the major classes of assets and liabilities that have been classified as held for sale in the Consolidated Balance Sheet as of September 30, 2025 (in thousands):
Assets: |  |
Accounts receivable |  | $ | 85,978 |
Contract assets |  | 21,988 |
Prepaid expenses and other |  | 6,966 |
Property, plant, and equipment |  | 14,330 |
Operating lease right-of-use assets |  | 3,115 |
Other assets |  | 28,787 |
Assets held for sale |  | $ | 161,164 |
Liabilities: |  |
Accounts payable |  | $ | 23,406 |
Contract liabilities |  | 34,341 |
Accrued payroll and benefits |  | 12,472 |
Other accrued expenses and liabilities |  | 50,477 |
Operating lease liabilities, current |  | 1,103 |
Operating lease liabilities, long-term |  | 2,445 |
Other long-term obligations |  | 12,521 |
Liabilities held for sale |  | $ | 136,765 |

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