IES Holdings Divests STR Mechanical
IES Holdings announced the sale of STR Mechanical and its subsidiary to an affiliate of SkyKnight Capital. STR, acquired by IES in 2016, provided HVAC services and was part of IES’s Commercial & Industrial segment. CEO Jeff Gendell noted that the divestiture aligns with a strategic review aimed at enhancing focus on core operations. IES expressed gratitude towards the STR team for their contributions and expressed confidence in STR's future under SkyKnight. FMI Capital Advisors acted as the exclusive financial advisor for this transaction.
- Divestiture allows IES to focus on core operations.
- Successful sale reflects strategic alignment with business review.
- Divesting STR could indicate challenges in the Commercial & Industrial segment.
HOUSTON, Oct. 10, 2022 (GLOBE NEWSWIRE) -- 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 Albright
Vice President of Corporate Development and Finance
IES Holdings, Inc.
(713) 860-1500
Investor Relations Contact:
Robert Winters or Ross Collins
Alpha IR Group
(312) 445-2870
IESC@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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