FREEPORT, Ill. - In the midst of a recession that has many businesses reducing the workforce, mechanical contracting firm Mechanical Inc. in Freeport, Ill., entered the sheet metal business and purchased the commercial division of Norstar Mechanical of Rockford, Ill.

“Expanding a company’s line of services in a down market allows more opportunities to do business by providing more services,” said Brian Helm, president of Mechanical Inc. “Our primary reason for entering the sheet metal business is that an increasing number of owners and construction managers, particularly on high-risk and design-build projects, expect one firm to have responsibility for all the mechanical trade work. This ‘one-stop shopping’ concept offers greater convenience for potential customers.”

According to the company, the acquisition of Norstar will increase the number of services that can be provided for green building projects. Annual revenue for Mechanical after the acquisition is expected to approach $200 million.

In addition to commercial HVAC sheet metal fabrication and installation, Norstar also has an architectural sheet metal division that performs architectural and metal roofing scopes. Norstar Heating and Cooling Inc. will continue to operate as a residential HVAC construction and service company under separate ownership from Mechanical Inc. All non-residential sheet metal work will operate under the Mechanical Inc. name.

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Publication date:07/27/2009