Limbach Holdings is a publicly traded company founded in 1901. The company is the ninth largest mechanical contractor operating in the United States, focusing on heating, ventilation, air conditioning, plumbing, and electrical industries. These are typically for larger projects, including systems for sports and entertainment venues, airports, hospital systems, and larger office buildings. Limbach is a nationally operated organization with a large network of regional offices which has spurred a consistent level of demand spanning around 1500+ contracted projects on an ongoing basis. The company’s customers range widely and include several large, recognizable organizations, among which include Turner, Gilbane, Clark Construction, and Suffolk. Limbach also works directly with several Fortune 500 companies such as HCA Healthcare, Disney, Honda, Siemens, and Amgen, among others. Over its history, Limbach has worked to support the needs of Nationwide Arena (The National Hockey League’s Columbus Blue Jackets facility) as well as Disney’s EPCOT Center, JFK Medical Center, and LAX’s Tom Bradley International Airport.
Limbach experienced cost overruns associated with some legacy contracts. While Limbach’s management team worked to resolve the isolated business incident quickly, the situation continued to impact profitability. Given the complexities of underwriting a large mechanical contractor and the operational difficulties the company was experiencing, Limbach sought a lender that would understand and underwrite their turnaround plan.
Colbeck worked closely with Limbach’s management team to develop a solution that directly addressed the company’s specific needs. This resulted in a $65 million credit facility that offered several benefits to the company.
It allowed for the management team to refinance the existing commercial banking syndicate and provided the company with the opportunity to continue to work through the loss-making contracts. This put Limbach back on track to achieving the historical levels of profitability. A further component of the deal was to provide acquisition capital for Limbach to remain acquisitive and continue to grow through this transitional period.
The strategic structure of the deal enabled Limbach to resume normal business operations, return to profitability, and ultimately transition back to traditional financing sources.
Colbeck Capital Management is a strategic lender that partners with companies during periods of transition, providing creative capital solutions to meet their evolving needs. Founded in 2009 by Jason Colodne and Jason Beckman, Colbeck Capital has offices in New York City and Los Angeles. To learn more about Colbeck Capital, visit www.colbeck.com.