Legence Corp. has agreed to acquire The Bowers Group for approximately $475 million to enhance its mechanical contracting capabilities in the Northern Virginia and D.C. metro region.

Target Information

Legence Corp. (Nasdaq: LGN) has announced its definitive agreement to acquire The Bowers Group, Inc., a leading mechanical contractor specializing in mechanical and plumbing solutions for intricate building systems. The Bowers Group operates primarily in the Northern Virginia and Washington D.C. metropolitan area, providing essential services to various construction projects.

The acquisition consideration for this deal is approximately $475 million. This includes a cash payment of $325 million, subject to specified purchase price adjustments, around $100 million in Legence’s Class A common stock, and an additional $50 million of deferred consideration. The latter will be paid at the end of 2026, either in cash or Legence's Class A common stock, depending on Legence’s choice. The transaction is projected to conclude in the first quarter of 2026, dependent on customary closing conditions and regulatory approval.

Industry Overview in the United States

The construction industry in the United States has seen a significant surge over the past few years, driven by robust demand in residential, commercial, and infrastructure sectors. The Northern Virginia and Washington D.C. regi