The acquisition of Pioneer Power, Inc. by Warrendale-based Limbach Holdings will strengthen the Pennsylvania company’s position in the Upper Midwest, officials with the company said.
Limbach announced the acquisition on Tuesday and said it had purchased Pioneer for $66.1 million financed through available cash and borrowings under the company’s recently expanded revolving credit facility. The acquisition of the formerly 100 percent ESOP-owned Pioneer opens up Limbach’s position in the Greater Twin Cities region and the Upper Midwest where Pioneer provides industrial and institutional mechanical solutions for healthcare, food, power/utility, oil refining and other select end markets.
Limbach, a building systems solution firm, said it expects the acquisition to have an incremental impact on revenue and adjusted EBITDA in 2025 and anticipates providing an updated yearly fiscal outlook during its second quarter report in August. The company expects PPI to contribute annualized revenue and adjusted EBITDA of $120 million and $10 million, respectively, beginning in 2026.
“We are excited to welcome the Pioneer Power team to the Limbach family,” Michael McCann, president and CEO of Limbach said. “This acquisition further expands our footprint in the core Midwest region and extends our reach into new geographic markets in the Upper Midwest. (PPI’s) industrial expertise builds on the capabilities acquired in our recent acquisition of Consolidated Mechanical and brings many new blue-chip customers with extensive and diverse mechanical system needs in large facilities. Our immediate focus will be on integrating operations and unlocking value by applying our proven value creation strategies to grow market share among core customers, improve gross margins over time, and deepen customer relationships as a trusted provider of mission-critical mechanical services.”