Integrated Electrical Services, one of the largest contractor roll-up firms in the 1990s, recently sold two electrical contracting businesses.
IES said it sold substantially all the assets of two of its commercial business units for a sale price of approximately $7.5 million in cash. IES said in October it planned to divest several commercial businesses.
The two businesses IES sold are Britt Rice Electric Inc., College Station, Texas; and Delco Electric Inc., Oklahoma City. Britt Rice Electric has been involved in nearly every recent construction project on the Texas A&M University campus.
IES, Houston, is ranked as the nation's biggest electrical contractor in EC&M magazine's “Top 50” listing.
During 2004, the two units sold had combined revenues and operating income of $38.7 million and $1.5 million, respectively. The net proceeds from these sales will be used to retire IES' senior secured indebtedness.
IES had a rough fourth quarter. The company posted a net loss of $134.4 million in its 2004 fiscal fourth quarter ending Sept. 30. IES also announced that because of the stricter financial requirements of its surety bond provider, it would no longer pursue some large construction projects that require surety bonds.