This bolt-on acquisition at a reasonable multiple expands ECG into higher-growth end markets (data centers, advanced manufacturing) and adds modular capacity. Monitor the Q3 2026 close and subsequent guidance update for accretion details. The deal is funded with existing liquidity, limiting dilution risk.
Price Chart
Executive Summary
Everus Construction Group (ECG) announced a definitive agreement to acquire Epsilon Industries, a modular construction solutions provider, for $295 million in cash. The deal is expected to close in Q3 2026 and will be funded through cash on hand and credit facilities. Epsilon is projected to generate ~$250 million in revenue for calendar 2026 with low-double-digit EBITDA margins, making this a strategically and financially accretive bolt-on acquisition that expands ECG's off-site construction capabilities and geographic reach into data center, advanced manufacturing, and healthcare end markets.
Key Facts
- Everus entered a definitive agreement to acquire Epsilon Industries for $295 million in cash.
- Epsilon expects to generate approximately $250 million in revenue for the full calendar year 2026 with EBITDA margins in the low double digits.
- The acquisition will be funded through a combination of cash on hand and borrowings under credit facilities.
- The transaction is expected to close in the third quarter of 2026.
- Epsilon's leadership team, including President Chris Wiederick, is expected to remain with the company.
- The acquisition enhances ECG's off-site modular construction capabilities and expands its geographic footprint into Florida, Texas, the Mid-Atlantic, and the Northeast.
- Epsilon serves attractive end markets including data center, advanced manufacturing, and healthcare.
Financial Impact
Acquisition price of $295 million in cash; Epsilon's expected 2026 revenue of ~$250 million with low-double-digit EBITDA margins implies an EV/Revenue multiple of ~1.2x and an EV/EBITDA multiple in the ~6-8x range, which is attractive for a high-growth construction services firm.
Risk Factors
- Integration risk of Epsilon's operations and workforce.
- Execution risk in realizing projected revenue and EBITDA targets.
- Potential increase in leverage from borrowings under credit facilities.
- Regulatory approval and customary closing conditions could delay or prevent the transaction.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0002015845-26-000042 |
| Exhibit: ex99-max7312026.htm | 0002015845-26-000042 |
| Document: 0002015845-26-000042-index-headers.html | 0002015845-26-000042 |
| Document: 0002015845-26-000042-index.html | 0002015845-26-000042 |
| Document: 0002015845-26-000042.txt | 0002015845-26-000042 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 31, 2026 9w ago | 8-K | $125.43 $115.73 | ▼ −7.73% | ▼ −10.72% | $124.16 (−1.01%) |
Apr 2, 2026 26w ago | 8-K | $123.88 $147.43 | ▲ +19.01% | ▲ +9.13% | $124.16 (+0.23%) |
Mar 27, 2026 27w ago | DEFA14A | $117.31 $140.25 | ▲ +19.55% | ▲ +6.81% | $124.16 (+5.84%) |
Feb 28, 2026 30w ago | Institutional Cluster | $119.30 $111.33 | ▼ −6.68% | ▲ +1.26% | $124.16 (+4.07%) |
Feb 24, 2026 31w ago | 8-K | $130.10 $123.29 | ▼ −5.23% | ▲ +0.00% | $124.16 (−4.57%) |
US Market Status
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