Newsline

GroupMAC, Building One form merger

June 1, 2000
/ Print / Reprints /
ShareMore
/ Text Size+
HOUSTON, TX — Group Maintenance America Corp. (GroupMAC) and Building One Services Corp., two of the largest U.S. facilities ser- vices companies, announced a merger agreement. The merger has been approved by each company’s board of directors and is expected to close by the end of the first quarter of 2000.

The combined company will take advantage of GroupMAC’s market penetration in the mechanical services segment and Building One’s electrical and janitorial services capabilities, also increasing immediate cross marketing and service bundling opportunities.

“Our combined strengths in hvac, electrical, process piping, controls, voice and data, and other high-tech applications means the combined company will be a major participant in the accelerating trend in upgrading America’s buildings and infrastructure and in the ongoing servicing of these essential systems,” said J. Patrick Milnor, GroupMAC ceo.

Building One, which provides products and services for routine building operation and maintenance, has annualized revenues of approximately $1.8 billion. GroupMAC, provider of mechanical and electrical services to commercial, industrial, and residential customers, currently has 110 locations in 28 states with annual revenues of approximately $1.5 billion.

The combined company will now have the following impact:

  • 250 operating locations in 34 states;
  • At least one service offering in all of the top 100 U.S. cities;
  • Mechanical and electrical services in 87 of the top 100 U.S. cities;
  • Mechanical, electrical, and janitorial services in 43 of the top 100 U.S. cities; and
  • Over 27,000 employees.

Concurrent to the closing of the merger, an affiliate of Apollo Management IV, L.P., a private investment firm, will exchange its Building One convertible debt and $150 million in cash for approximately $225 million of GroupMAC convertible preferred stock. The cash proceeds from the investment will be used to fund the cash election option for up to approximately 11 million shares of GroupMAC common stock in the merger.

“With a solid financial partner like Apollo, the strategic possibilities for the combined company are broadened,” said Milnor.

“It’s a win-win for the customers, employees, and shareholders of both companies.”

Bob Munson, president of Trinity Contractors, Inc./GroupMAC, Grand Prairie, TX, thinks the merger is great and will create a lot of opportunities for contractors.

“I think it will go a long way to growing the top line and the bottom line,” he said.

“One thing it does is it puts us together with Walker Engineering [Dallas-area Building One contractor with $124 million in revenues]. They can take us along with them on projects and we can supplement them in areas where we have the expertise.

“The merger is going to fill in our national presence.”

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by John Hall

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

Kyle Gargaro, editor-in-chief of The NEWS, hosted the 2014 ACCA CEO Forum. At the event, six well-known, highly respected company executives, Gary Michel, Ingersoll Rand/Trane; Chris Nelson, Carrier Corp.; Chris Peel, Rheem Mfg. Co.; Rod Rushing, Johnson Controls; Brent Schroeder, Emerson Climate Technologies; and Doug Young, Lennox; provided individual industry outlooks and fielded questions directly from attending contractors. Listen to the entire event on the NEWSMakers podcast. Posted on April 14.

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con