IMD Acquired by Legence Corp, Achieving 70% CAGR Over 4 Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Should l Buy LGN?
Source: PRnewswire
- Acquisition Announcement: Innovative Mechanical & Design (IMD) has been acquired by Legence Corp, a Blackstone-backed firm specializing in MEP engineering and maintenance services, with over 60% of its clients being Nasdaq-100 companies.
- Market Expansion: IMD has rapidly grown as a preferred partner in sectors like healthcare and pharmaceuticals, and Legence's resources will enable IMD to compete nationally and expand its market share.
- Enhanced Service Capabilities: The acquisition will strengthen IMD's service and maintenance offerings and its relationships with Fortune 100 companies, further solidifying its position in the industry.
- Growth Potential: With a 70% CAGR over the past four years, IMD's alignment with Legence will provide the necessary support to meet increasing client demands and navigate market challenges.
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Analyst Views on LGN
Wall Street analysts forecast LGN stock price to fall
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 48.160
Low
37.00
Averages
45.40
High
54.00
Current: 48.160
Low
37.00
Averages
45.40
High
54.00
About LGN
Legence Corp. is a provider of engineering, installation and maintenance services for mission-critical systems in buildings. The Company operates through two segments: Engineering & Consulting, and Installation & Maintenance. Its Engineering & Consulting segment designs heating, ventilation and air conditioning (HVAC) and other mechanical, electrical and plumbing (MEP) systems for buildings, develops strategies to help reduce energy usage and make buildings more sustainable and provides program and project management services for clients’ installation and retrofit projects. Its Installation & Maintenance segment fabricates and installs HVAC systems, process piping and other MEP systems in new and existing industrial, commercial and institutional buildings and provides ongoing preventative and corrective maintenance services for those systems. It focuses on technically demanding buildings sectors, including technology, life sciences, healthcare and education.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Underwriter Selection: Goldman Sachs and Jefferies are acting as joint lead book-running managers, showcasing their strong influence in the capital markets, which may enhance investor confidence in Legence's future financing capabilities.
- Additional Option: The selling stockholders granted underwriters a 30-day option to purchase an additional 1,260,326 shares, further enhancing market liquidity and investor participation.
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See More
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- Upsized Offering: Legence Corp. announced the pricing of an upsized secondary offering of 8,402,178 shares at $45 each, reflecting strong market demand, with the offering expected to close on December 16, 2025.
- Underwriter Participation: The offering is led by Goldman Sachs and Jefferies, with participation from multiple financial institutions, indicating strong market confidence in Legence, which may support future financing opportunities for the company.
- No Proceeds for Company: Legence will not receive any proceeds from the offering as all shares are sold by stockholders affiliated with Blackstone, allowing the company to maintain focus on its core operations rather than capital raising.
- Market Positioning: Legence specializes in engineering and maintenance services for technically demanding sectors, serving over 60% of the Nasdaq-100 Index clients, showcasing its strong competitive position and potential for sustained growth.
See More
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- Upsized Offering: Legence Corp. announced that underwriters fully exercised their option to purchase an additional 1,260,326 shares of its Class A common stock, increasing the total offering to 9,662,504 shares, indicating strong market demand for the company's stock.
- Price Stability: The offering price of $45 per share, despite Legence not selling any shares directly and receiving no proceeds, reflects market recognition of the company's value, which helps maintain stock price stability.
- Strong Underwriter Lineup: Goldman Sachs and Jefferies acted as joint lead book-running managers, with numerous reputable financial institutions involved, showcasing market confidence and support for Legence, thereby enhancing the company's financing capabilities.
- Market Impact: This offering will further strengthen Legence's capital structure; although the company did not directly benefit, the increased liquidity and market attention may pave the way for future strategic investments and business expansion.
See More
Legence Completes $325 Million Acquisition of Bowers Group
- Acquisition Completed: Legence Corp. has successfully completed its acquisition of The Bowers Group for $325 million, marking a significant milestone in its growth strategy and expected to enhance its service capabilities in Northern Virginia and the DC Metro area.
- Diverse Funding Sources: The acquisition was financed through a combination of cash on hand, borrowings from a revolving credit line, a $200 million upsizing of Legence's term loan, and the issuance of approximately 2.55 million shares of Class A common stock, demonstrating the company's financial flexibility and strength.
- Future Growth Potential: With over 40 years of expertise in mechanical, plumbing, and process system solutions, Bowers is expected to enhance Legence's service quality and market share, further solidifying its leadership position in technically demanding sectors.
- Strategic Synergies: This acquisition will not only enhance Legence's service offerings but also drive long-term performance growth by providing more comprehensive solutions to meet customer needs, thereby increasing customer satisfaction.
See More
Legence Completes $325 Million Acquisition of Bowers Group
- Acquisition Completed: Legence has officially completed its acquisition of Bowers Group for $325 million, marking a significant milestone in its growth strategy and expected to enhance its service capabilities in Northern Virginia and the DC Metro area.
- Funding Structure: The acquisition was financed through a combination of cash, borrowings from a revolving credit line, the issuance of approximately 2.55 million shares, and a $200 million upsizing of Legence's term loan, demonstrating the company's financial flexibility and strength.
- Market Positioning: With over 40 years of experience in mechanical, plumbing, and process system solutions, Bowers Group's acquisition enables Legence to offer higher quality services, further solidifying its market position in technically demanding sectors.
- Future Outlook: Legence CEO Jeff Sprau stated that the acquisition will combine both companies' expertise to enhance customer service, indicating that the company is poised for greater success in the future.
See More
Legence Prices Upsized Secondary Offering of 8.4M Shares at $45 Each
- Stock Offering: Legence Corp. announced an upsized secondary offering of 8,402,178 shares of Class A common stock at $45 per share, indicating sustained market demand despite the company not benefiting directly from the sale.
- Underwriter Selection: Goldman Sachs and Jefferies are acting as joint lead book-running managers, showcasing their strong influence in the capital markets, which may enhance investor confidence in Legence's future financing capabilities.
- Additional Option: The selling stockholders granted underwriters a 30-day option to purchase an additional 1,260,326 shares, further enhancing market liquidity and investor participation.
- Expected Closing Date: The offering is expected to close on December 16, 2025, which, if successful, will provide Legence with greater flexibility in future capital operations.
See More
Legence Prices Upsized Secondary Offering of 8.4M Shares at $45 Each
- Upsized Offering: Legence Corp. announced the pricing of an upsized secondary offering of 8,402,178 shares at $45 each, reflecting strong market demand, with the offering expected to close on December 16, 2025.
- Underwriter Participation: The offering is led by Goldman Sachs and Jefferies, with participation from multiple financial institutions, indicating strong market confidence in Legence, which may support future financing opportunities for the company.
- No Proceeds for Company: Legence will not receive any proceeds from the offering as all shares are sold by stockholders affiliated with Blackstone, allowing the company to maintain focus on its core operations rather than capital raising.
- Market Positioning: Legence specializes in engineering and maintenance services for technically demanding sectors, serving over 60% of the Nasdaq-100 Index clients, showcasing its strong competitive position and potential for sustained growth.
See More
