Integrated Electrical Services, Inc. has acquired all of the shares of stock of Shanahan Mechanical and Electrical, Inc., a Lincoln, Nebraska-based provider of mechanical and electrical contracting services. Shanahan will operate as a subsidiary in IES's Commercial & Industrial segment and will continue to operate under the Shanahan name.
“We are pleased to have Shanahan Mechanical and Electrical and its over 80 employees join IES. Shanahan was founded in 1958 by the father and uncle of current president Steve Shanahan and today is a leading mechanical and electrical contractor in Lincoln, Neb., with strong positions in health care, university, industrial and commercial markets,” said Tom Santoni, president of IES’s Commercial & Industrial segment. “The acquisition of Shanahan not only adds mechanical contracting expertise to IES, but also accelerates our entry into the Lincoln market, an area that our Holdrege, Neb. location has targeted for expansion. Further, the acquisition gives us the opportunity to expand our geographic coverage and capabilities without the costs and risks of a start-up, greenfield operation.”
Steve Shanahan, president of Shanahan, added, “Shanahan owes its over 50-year success to its dedicated employees. Partnering with IES offers the opportunity to join a company that shares this same long-term commitment to its employees and customers and is a natural home for the continued success of Shanahan.”
“The acquisition of Shanahan is consistent with our strategy to complete bolt-on acquisitions that enhance and expand our capabilities within our current operating segments,” said Robert Lewey, president of IES. “The recent acquisitions of Shanahan, Southern Rewinding and Calumet Armature and Electric are each expected to be immediately accretive to earnings and collectively are forecasted to add more than $30 million in revenue in fiscal year 2016. These acquisitions are a strong step toward improving our profitability and utilizing the approximately $459 million of net operating loss carryforwards available to us for U.S. federal income tax purposes as of September 30, 2014. We expect to report fourth quarter results for the fiscal year ending September 30, 2015 on or before December 14, 2015.”