ABM Industries (ABM) Announces Closure of Able Services Buyout
The acquisition strengthens ABM Industries' (ABM) engineering and technical services, and expands its sustainability and energy efficiency offerings.
ABM Industries Incorporated ABM announced last Thursday that it has completed the acquisition of Able Services. The company had announced the deal on Aug 25.
The addition of the San Francisco-based facilities services company is expected to expand ABM’s core businesses and key geographies. The acquisition should strengthen the company’s engineering and technical services, and expand its sustainability and energy efficiency offerings.
The buyout adds $1.1 billion in engineering and janitorial services revenues, and is anticipated to achieve around $30 million to $40 million in cost synergies for the company. Most of the cost synergies are expected to be attained within the first year following the closure of the deal.
Scott Salmirs, President and CEO of ABM Industries said, “Together, ABM and Able can more fully address our clients’ needs for innovative and cost-effective solutions, supported by our national footprint, comprehensive facility services expertise and dedicated team of more than 100,000 employees.”
ABM’s shares have had an impressive run on the bourse year to date. The stock has appreciated 23.7% against the industry’s loss of 6.5% and the Zacks S&P 500 composite’s growth of 17.1%.
Zacks Rank and Stocks to Consider
ABM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup MAN, Cross Country Healthcare CCRN and Genpact Limited G, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Cross Country Healthcare and Genpact is pegged at 24.2%, 9.9% and 14.7%, respectively.
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