Calcalist – 19.02.20
Electra acquires 56% of an American Air Conditioning Company at a Value of $ 34.6 Million
In practice, Electra will pay $ 19.4 million via its subsidiary, and will enter for the first time the US air conditioning sector; Itamar Deutscher, Electra's CEO: "We will continue to seek attractive investment opportunities with a strategy based on a broad base of professional services to the real estate and infrastructure industry."
The Electra real estate company reported today, Wednesday, that its subsidiary Electra USA signed a binding agreement to acquire 56% of the US-based conditioning company F.W. Sims, which operates in New York, for $ 19.4 million, attributing the American company a valuation of $ 34.6 million.
By doing so, Electra is entering for the first time the US air conditioning sector after announcing, in the end of December 2018 that it established a US subsidiary that will acquire 51% of the equity of two US electromechanical companies: Electra Hellman Electric and Gilston Electrical, which it acquired at the beginning of January 2019 for a total of NIS 155 million.
The company notes that the acquisition of the US air conditioner company will make its US subsidiary one of New York's largest electromechanical contractors, with an annual activity of about NIS 1.2 billion and a backlog orders of NIS 1.7 billion as of the beginning of 2020.
Itamar Deutscher, CEO of Electra Group, stated in the company's announcement that "the deal represents a direct continuation of our expansion in the US market with the establishment of Electra USA in early 2019 and the acquisition of two electromechanical companies. We intend to continue to strengthen our position in the international arena, finding attractive investment opportunities that are in line with Electra's strategy, which is based on a wide range of professional services in the real estate and infrastructure sectors.
F.W. Sims is a family-owned company founded in 1976 and specializes in mechanical work in the field of air conditioning for infrastructure, transportation, commercial buildings and more. The company has about 200 employees and is a partner in various projects in New York City, with backlog orders for about half a billion NIS at the time of reporting the deal.