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Limbach Holdings Acquires Pioneer Power for $66.1 Million

Limbach Holdings expands its operations with the acquisition of Pioneer Power.

News Summary

Limbach Holdings, Inc. has acquired Pioneer Power, Inc. for $66.1 million, aiming to expand its reach in the Upper Midwest, especially the Greater Twin Cities. The acquisition includes Pioneer Power’s facilities, adding about $120 million in annual revenue and contributing to Limbach’s EBITDA from 2026. This strategic move highlights Limbach’s commitment to growth through acquisitions and integrating operational synergies to enhance market presence and financial performance.

Warrendale, Pennsylvania – Limbach Holdings, Inc. has announced the acquisition of Pioneer Power, Inc. for a total of $66.1 million, a strategic move aimed at expanding its presence in the Upper Midwest, particularly in the Greater Twin Cities area.

The acquisition will be financed through Limbach’s available cash reserves and recent borrowing options provided by its expanded revolving credit facility. The purchase includes real property associated with Pioneer Power’s headquarters, warehouse, and fabrication facility, which is valued at approximately $4.6 million.

This significant acquisition will enhance Limbach’s market position as it leverages Pioneer Power’s expertise in providing industrial and institutional mechanical solutions across various sectors including healthcare, food production, utilities, and oil refining. Limbach anticipates that Pioneer Power will add about $120 million in annualized revenue and contribute approximately $10 million in adjusted EBITDA starting in 2026.

The integration of Pioneer Power will focus on maximizing operational synergies and improving market share, gross margins, and relationships with customers. Limbach expects this acquisition will bolster its geographical reach into new markets within the Upper Midwest, setting the stage for continued growth and profitability.

Michael McCann, President and CEO of Limbach, noted that the addition of Pioneer Power builds upon the industrial expertise gained from a previous acquisition of Consolidated Mechanical. This move reflects Limbach’s ongoing commitment to pursue growth through strategic acquisitions. The company has invested over $150 million into similar ventures without requiring stock issuance for funding since it went public.

Impact on Financial Performance

The acquisition is projected to have a positive impact on Limbach’s revenue and adjusted EBITDA beginning in 2025. This is part of Limbach’s broader strategy to enhance its financial performance through both organic growth and acquisitions.

About Pioneer Power

Pioneer Power has been operational since 1947 and was previously 100% owned by an Employee Stock Ownership Plan (ESOP). Their specializations make them adept in industrial and institutional mechanical solutions, supporting various essential sectors which align well with Limbach’s objectives.

Future Outlook

Limbach’s immediate focus will be on effectively integrating Pioneer Power’s operations and utilizing its expertise to better serve a diverse customer base. The company has indicated its intention to maintain profitability while simultaneously increasing its market share through both organic growth and acquisitions.

Looking ahead, Limbach Holdings plans to provide an updated fiscal outlook during its upcoming second quarter report in August 2025, guiding stakeholders on future expectations and financial performance following the acquisition.

Overall, this acquisition marks a significant step for Limbach Holdings, reinforcing its commitment to growth and operational excellence in the competitive mechanical solutions market of the Upper Midwest.