Big fire company a likely LBO target?


I saw this story about Standard & Poor’s list of 10 publicly traded companies that are likely LBO candidates linked on Twitter and wondered if it might include a security or fire company, and it did.

The report says that the M&A activity for the rest of the year is likely to be led private-equity firms who have “more than $500 billion of cash waiting to be put to work–needing to be put to work, actually, because if it isn’t they must return it to investors.”

It continues: “buyout shops are itching to get their hands on what they see as undervalued assets. Access to credit remains pretty steady and banks are willing to lend, so bankers and analysts expect leveraged buyouts to account for a fair portion of overall M&A activity.”

So, who’s on the list?

Eastman Kodak ($1.2 billion)

Oshkosh ($2.8 billion)

GameStop ($2.9 billion)

EMCOR Group ($1.6 billion)

Cooper Tire & Rubber Co ($1.3 billion)

DSW ($1 billion)

TRW Automotive ($3.6 billion)

Dillard’s ($1.4 billion)

Alaska Air Group ($1.7 billion)

Gymboree ($1.2 billion)

Check out Number Four. EMCOR Group, a $1.6 billion, Fortune 500 mechanical and electrical construction services company, owns a bunch of fire installation companies.

Here’s a story I wrote about them in March when they acquired Scalise, a $70m. full-service mechanical, electrical and fire and another one I wrote about S.A. Communale, a fire installation company that’s an EMCOR subsidiary, opening a branch in Washington, D.C.

Yesterday, I put an email into my contact there to see if they’d like to comment. No word yet.