APi Group Enters Definitive Deal To Acquire Elevated Facility Services Group For ~$570M In Cash, Subject To Adjustments
Portfolio Pulse from Benzinga Newsdesk
APi Group has announced a definitive agreement to acquire Elevated Facility Services Group for approximately $570 million in cash, subject to adjustments. This acquisition is aimed at expanding APi's leadership in safety services, particularly in non-discretionary, regulatory-driven applications. It is anticipated to add around $220 million in annual revenue and be accretive to APi's '13/60/80' shareholder value creation framework, thanks to Elevated's strong EBITDA margin, significant revenue from inspections, service, and repair, and an efficient, asset-light business model. The deal is expected to close in the second quarter of 2024.
April 15, 2024 | 11:32 am
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POSITIVE IMPACT
APi Group's acquisition of Elevated Facility Services for approximately $570 million is set to enhance its market position in safety services, with an expected revenue increase of $220 million annually. This strategic move aligns with APi's '13/60/80' value creation framework, indicating a positive outlook on its financial health and growth trajectory.
The acquisition is directly related to APi Group's core business and is expected to significantly contribute to its revenue, indicating a positive short-term impact on its stock price. The deal's alignment with APi's '13/60/80' shareholder value creation framework and the emphasis on an asset-light business model suggest strong future cash flow generation, further supporting a positive outlook.
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IMPORTANCE 90
RELEVANCE 100