APi Group is planning to invest $570 million to enter the elevator and escalator business. The company, based in New Brighton, is acquiring Elevated Facility Services Group, which is based in Tampa, Florida, and has approximately 600 employees across 18 states.
This acquisition represents the largest one for APi Group since purchasing Chubb’s fire and security business for $3.1 billion. Elevated Facility Services Group generates about $220 million in annual sales through contractual maintenance and repair services. The company has higher margins compared to APi’s other businesses, making it a strategic move in line with the long-term shareholder value goals.
Elevated complements APi’s strategy of cross-selling services from inspection and monitoring to repair and maintenance across its portfolio. APi Group provides life safety, security, and specialty services to the construction and construction-related industries through multiple operating companies, boasting approximately 29,000 employees and $6.9 billion in total revenue in the previous year.
The elevator and escalator services industry is fragmented, with a total market estimated to be over $10 billion. APi Group sees the acquisition of Elevated Facility Services Group as a key step in expanding further into this industry. The deal is expected to close in the second quarter of 2024 after receiving shareholder and regulatory approvals.