IES Holdings Acquires Freeman Enclosure Systems, LLC
16 March 2017 - 11:41PM
IES Holdings, Inc. (or “IES”) (NASDAQ:IESC) today announced that
its subsidiary IES Infrastructure Solutions, LLC has acquired all
of the membership interests of Freeman Enclosure Systems, LLC
(“Freeman”). Freeman, based outside of Cincinnati, Ohio,
manufactures custom generator enclosures that are primarily used by
data centers and large commercial and industrial facilities.
The acquisition also includes the purchase of Freeman’s
143,000-square foot manufacturing facility through an affiliated
entity. Freeman will operate as a subsidiary in IES’s
Infrastructure Solutions segment and will continue to operate under
the Freeman name.
“We are pleased to have Freeman Enclosure
Systems and its over 250 employees join IES. As a leading
manufacturer of custom generator enclosures, Freeman adds valuable
engineering and manufacturing capabilities to the suite of product
and service solutions that we can offer our customers,” said Mike
Rice, President of IES’s Infrastructure Solutions segment. “I am
particularly excited to partner with Dale Freeman, who founded the
company and will continue as President of Freeman. I look
forward to working with him to provide Freeman with additional
resources and capital to further expand its capabilities.”
Dale Freeman, President of Freeman, added,
“Freeman owes its success to its dedicated employees, many of whom
I’ve known and worked with for years. Partnering with IES
offers them the opportunity to join a company that shares this same
long-term commitment to its employees and customers and that can
also provide the capital necessary to meet our expansion
needs.”
Robert Lewey, President of IES, noted, “The
acquisition of Freeman is consistent with our strategy to complete
strategic acquisitions that enhance our capabilities within current
operating segments. Freeman, like our other acquisitions in
the Infrastructure Solutions segment, strengthens our offering of
electro-mechanical products and services. These acquisitions
are also a strong step toward improving our profitability and
utilizing the approximately $404 million of net operating loss
carryforwards available to us for U.S. federal income tax purposes
as of September 30, 2016.”
ABOUT IES HOLDINGS, INC.IES is
a holding company that owns and manages diverse operating
subsidiaries, comprised of providers of industrial infrastructure
services to a variety of end markets. Our over 4,000 employees
serve clients in the United States. For more information about IES,
please visit www.ies-co.com.
ABOUT IES INFRASTRUCTURE
SOLUTIONS IES’s Infrastructure Solutions segment provides
electro-mechanical solutions for industrial operations. For more
information about IES Infrastructure Solutions, please visit
www.iesinfrastructure.com.
ABOUT FREEMAN ENCLOSURE
SYSTEMSFreeman manufactures custom generator enclosures
that are primarily used by data centers and large commercial and
industrial facilities. Based outside of Cincinnati, Ohio, Freeman
operates in a 143,000-square foot manufacturing facility and
supports customers throughout the United States. For more
information about Freeman, please visit
www.freemanenclosures.com.
Certain statements in this release may be deemed
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, all of which are based upon various estimates
and assumptions that the Company believes to be reasonable as of
the date hereof. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "could," "should,"
"expect," "plan," "project," "intend," "anticipate," "believe,"
"seek," "estimate," "predict," "potential," "pursue," "target,"
"continue," the negative of such terms or other comparable
terminology. These statements involve risks and uncertainties that
could cause the Company's actual future outcomes to differ
materially from those set forth in such statements. Such risks and
uncertainties include, but are not limited to, the ability of our
controlling shareholder to take action not aligned with other
shareholders; the possibility that certain tax benefits of our net
operating losses may be restricted or reduced in a change in
ownership; the potential recognition of valuation allowances on net
deferred tax assets; the inability to carry out plans and
strategies as expected, including our inability to identify and
complete acquisitions that meet our investment criteria in
furtherance of our corporate strategy; competition in the
industries in which we operate, both from third parties and former
employees, which could result in the loss of one or more customers
or lead to lower margins on new projects; fluctuations in operating
activity due to downturns in levels of construction, seasonality
and differing regional economic conditions; and our ability to
successfully manage projects, as well as other risk factors
discussed in this document, in the Company's annual report on Form
10-K for the year ended September 30, 2016 and in the Company’s
other reports on file with the SEC. You should understand
that such risk factors could cause future outcomes to differ
materially from those experienced previously or those expressed in
such forward-looking statements. The Company undertakes no
obligation to publicly update or revise any information, including
information concerning its controlling shareholder, net operating
losses, borrowing availability, or cash position, or any
forward-looking statements to reflect events or circumstances that
may arise after the date of this release.
Forward-looking statements are provided in this press release
pursuant to the safe harbor established under the Private
Securities Litigation Reform Act of 1995 and should be evaluated in
the context of the estimates, assumptions, uncertainties, and risks
described herein.
General information about IES Holdings, Inc. can be found at
http://www.ies-co.com under "Investors." The Company's annual
report on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K, as well as any amendments to those reports,
are available free of charge through the Company's website as soon
as reasonably practicable after they are filed with, or furnished
to, the SEC.
Contact: Robert Lewey, President
IES Holdings, Inc.
713-860-1500
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