Legence (NASDAQ: LGN) to acquire Bowers for $475 million

Legence Corp. (NASDAQ: LGN) announced a definitive agreement to acquire The Bowers Group, Inc., a mechanical contractor based in Beltsville, Maryland, for approximately $475 million. The transaction includes $325 million in cash, $100 million in Legence stock, and $50 million in deferred consideration.

Bowers, established in 1984, provides mechanical and plumbing solutions in the Northern Virginia and Washington DC Metro region. The company employs approximately 1,700 people and operates over 370,000 square feet of fabrication capacity.

For the twelve months ended September 30, 2025, Bowers generated approximately $767 million in revenue, $69 million in net income, and $72 million in EBITDA. The company’s backlog and awarded contracts totaled an estimated $1.3 billion as of September 30, 2025.

Legence expects Bowers to generate revenue of $825 million to $875 million and EBITDA of $75 million to $85 million in calendar year 2026. The acquisition is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approval.

The cash portion will be funded through cash on hand, borrowings under Legence’s revolving credit facility, and an anticipated $150 million increase to the company’s term loan facility. Pro forma net leverage is expected to be approximately 2.9 times following completion.