IES Holdings Divests STR Mechanical
10 October 2022 - 11:45PM
IES Holdings, Inc. (“IES”) (NASDAQ: IESC) announced today that it
has sold STR Mechanical, LLC and its subsidiary Technical Services
II, LLC (collectively, “STR”) to an affiliate of SkyKnight Capital
L.P. (“SkyKnight”). STR, originally acquired by IES in 2016, is a
Charlotte, North Carolina-based provider of heating, ventilation
and air conditioning (HVAC) maintenance, repair, and replacement
services to commercial customers and had operated as part of IES’s
Commercial & Industrial segment.
Jeff Gendell, Chairman and Chief Executive
Officer of IES, said, “The decision to divest STR is a result of
the previously discussed strategic review of our Commercial &
Industrial segment. While this strategic and structural review is
ongoing, the divestiture of STR increases our focus on our core
operations.”
Mr. Gendell continued, “I want to thank Mike
Ditty, Chris Landreth and the rest of the STR team for their
contributions to IES over the last six years and wish them the very
best. We believe that SkyKnight will be a strong partner for STR as
it moves into its next phase of growth.”
FMI Capital Advisors served as the exclusive
financial advisor to IES on the transaction.
About IES Holdings, Inc.IES
designs and installs integrated electrical and technology systems
and provides infrastructure products and services to a variety of
end markets, including data centers, residential housing, and
commercial and industrial facilities. Our more than 6,500 employees
serve clients in the United States. For more information about IES,
please visit www.ies-co.com.
Company Contact:Will
AlbrightVice President of Corporate Development and FinanceIES
Holdings, Inc.(713) 860-1500
Investor Relations Contact:Robert Winters or
Ross CollinsAlpha IR Group(312) 445-2870IESC@alpha-ir.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 impact of the
COVID-19 outbreak or future pandemics on our business, including
the potential for job site closures or work stoppages, supply chain
disruptions, delays in awarding new projects, construction delays,
reduced demand for our services, delays in our ability to collect
from our customers, the impact of third party vaccine mandates on
employee recruiting and retention, or illness of management or
other employees; 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 or a change in the federal tax
rate; the potential recognition of valuation allowances or
write-downs on 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, or the
subsequent underperformance of those acquisitions; 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 or
the housing market, seasonality and differing regional economic
conditions; the possibility of inaccurate estimates used when
entering into fixed-price contracts 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, 2021 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 "Investor Relations." 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.
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