McPhee Electric slated to join Xcelecom
Xcelecom, Inc. (Hamden, CT) — a non-regulated business unit of UIL Holdings Corporation and a provider of specialty electrical and voice-data-video design/build contracting and services — announced that it has agreed to acquire MCPHEE ELECTRIC LTD., LLC, an electrical contracting company based in Farmington, CT. The acquisition also includes McPhee Utility & Power Signal Ltd. — a sister company focused on utility, high voltage and traffic signal market segments. The McPhee acquisition will be Xcelecom's sixth overall and largest to date as it continues to build its network of contracting and services companies from Boston to Virginia.
Principals of both companies anticipate a formal closing by the end of October, using the next few weeks to begin planning for integration of all CT operations while the final details of the combination are worked out. The acquisition of McPhee is expected to add approximately $60 million to Xcelecom's annual revenues and will be immediately accretive to UIL Holdings earnings.
The agreement to acquire McPhee will put Xcelecom's combined annual revenue at over $200 million, compared to $25 million annually less than 18 months ago. After completing the McPhee deal, Xcelecom operations will stretch over six states and nine locations, positioning it as a leading one-stop provider of services throughout the Northeast corridor.
"The rigorous and disciplined execution of the Xcelecom acquisition objectives is a key component of UIL Holdings' drive to create new value for its shareholders as restructuring of the electric utility industry plays out," said Nathaniel Woodson, Chairman and CEO of UIL Holdings.
The McPhee acquisition will complement Johnson Electric Co., Inc. of Stratford acquired in September and Precision Power, Inc. of Hamden, Xcelecom's other CT-based operating companies. McPhee has more than 350 employees and provides a wide range of electrical construction and voice-data-video specialties including site utilities, power distribution and generation, wireless communication infrastructure and telecommunications systems. In recent years, McPhee has become widely known for its successful relationship with both the Mashantucket and Mohegan Tribes in Southeastern CT as they constructed their world-renowned casinos. McPhee draws its workforce from locals of the International Brotherhood of Electrical Workers (IBEW) in CT, Rhode Island, Vermont and Massachusetts. It will retain its name, operating location and management team after the acquisition is complete.
Edited by Jerry R. Borland, P.E.
Managing Editor, EC Online
jborland@vertical.net