Construction Company APi Group Acquires Elevated Facility Services For ~$570M
Portfolio Pulse from Shivani Kumaresan
APi Group Corporation (NYSE:APG) is set to acquire Elevated Facility Services Group for approximately $570 million in cash, aiming to expand its safety services market. The acquisition, expected to close in Q2 2024, is anticipated to add $220 million in annual revenue and be accretive to adjusted earnings per share. APi has revised its Q1 FY24 revenue outlook upwards and expects increased adjusted EBITDA and free cash flow. APG shares closed down 2.08% at $38.56.
April 15, 2024 | 1:22 pm
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APi Group's acquisition of Elevated Facility Services for $570M aims to enhance its market position in safety services, expecting to add $220M in annual revenue and be accretive to EPS. The company also raised its Q1 FY24 revenue outlook.
The acquisition of Elevated Facility Services is a strategic move for APi Group, aiming to expand its total addressable market and create cross-selling opportunities. The positive adjustment in the Q1 FY24 revenue outlook and the expected accretive impact on earnings per share signal a strong short-term potential for APG's stock. However, the recent drop in share price indicates market reactions to acquisitions can be mixed, potentially due to the cash outlay and integration risks.
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