NV5 Enters Agreement to Acquire Global Fire Protection Group; Expands Recurring Fire Safety Engineering Consulting and Design Services
Rhea-AI Summary
NV5 has announced an agreement to acquire Global Fire Protection Group (Global FPG), a provider of fire safety engineering, inspection, and consulting services. The acquisition, made through a combination of cash and stock, will be immediately accretive to NV5's earnings. Global FPG, founded in 2014, operates in all 50 U.S. states, eight Canadian provinces, and has completed projects in 39 countries.
Global FPG specializes in fire protection services for data centers, healthcare, utilities, and industrial sectors, offering suppression, detection, and compartmentation disciplines. The acquisition aims to enhance NV5's existing mechanical, electrical, plumbing, and technology design services through cross-selling opportunities in high-margin, recurring fire protection services.
Positive
- Immediate earnings accretion from acquisition
- Expansion into high-margin, recurring revenue services
- Cross-selling opportunities with existing services
- Geographic expansion across 50 US states, 8 Canadian provinces
- Access to attractive end markets (data centers, healthcare, utilities)
Negative
- None.
News Market Reaction
On the day this news was published, NVEE declined 0.92%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
HOLLYWOOD, Fla., Dec. 18, 2024 (GLOBE NEWSWIRE) -- NV5, a provider of technology, certification, and consulting solutions, announced today that it has entered an agreement to acquire Global Fire Protection Group (Global FPG), a provider of fire safety engineering, inspection, and consulting services. Founded in 2014, Global FPG is licensed to deliver fire services in all 50 U.S. states and eight Canadian provinces, and it has completed projects in 39 countries. The acquisition was made with a combination of cash and stock and will be immediately accretive to NV5’s earnings.
“Fire protection engineering and consulting is a high margin, recurring service that is a natural cross-sell with NV5’s existing mechanical, electrical, plumbing, and technology design services,” said Dickerson Wright, PE, Executive Chairman of NV5. “We are pleased to bring this service in-house with the acquisition of an industry leader in fire protection.”
Global FPG specializes in fire protection services for attractive end markets, including data centers, healthcare, utilities, and industrial sectors. The Company is one of few fire life safety companies offering suppression, detection, and compartmentation disciplines in active and passive fire protection.
“Fire protection consulting is in high demand due to the mandated nature of fire life safety in meeting regulatory requirements and also mitigating risks to property and people,” said Ben Heraud, CEO of NV5. “From data center and technology facilities to healthcare and higher education campuses, all of our buildings and technology clients need fire protection services, and we look forward to the contributions that Global FPG will make to our business domestically and internationally.”
“Joining NV5 allows Global FPG to pursue larger projects that were out of reach as a smaller entity, and we look forward to the growth and career opportunities that NV5 will provide,” said Patrick Tesche, President of Global Fire Protection Group.
About Global Fire Protection Group
Global Fire Protection Group, LLC provides customers with fire and life safety engineering, consulting, and design services worldwide. Global Fire Protection Group engineers have over a century of combined experience and are licensed in all U.S. states, Puerto Rico, Guam, and eight Canadian provinces. Global Fire Protection Group is a complete fire and life safety company providing active and passive fire protection services to clients worldwide. For additional information, please visit www.globalfpg.com.
About NV5
NV5 Global, Inc. (NASDAQ: NVEE) is a provider of technology, certification, and consulting solutions for public and private sector clients supporting utility, infrastructure, and building assets and systems. The Company primarily focuses on six business verticals: Utility services, infrastructure engineering, construction quality assurance, buildings & technology, environmental health sciences, and geospatial services. NV5 operates out of more than 100 offices nationwide and abroad. For additional information, please visit the Company’s website at www.NV5.com. Also visit the Company on Twitter, LinkedIn, Facebook, and Vimeo.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements, except as required by law.
Investor Relations Contact
NV5 Global, Inc.
Jack Cochran
Vice President, Marketing & Investor Relations
Tel: +1-954-637-8048
Email: ir@nv5.com
Source: NV5 Global, Inc.
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