ABM (NYSE:ABM) has announced its agreement to acquire WGNSTAR in a cash transaction valued at approximately $275 million.
The acquisition is part of ABM’s strategy to expand its semiconductor and technical services platform, enhancing its offerings in this high-growth sector.
WGNSTAR, which provides managed workforce and equipment support, has more than 1,300 employees and is expected to generate around $135 million in revenue in 2025.
The company’s adjusted EBITDA margins exceed those of ABM’s M&D (Maintenance and Distribution) segment, making the acquisition strategically beneficial for ABM’s portfolio.
Post-close, ABM’s semiconductor solutions business is projected to reach approximately $325 million in annualized revenue.
The transaction is set to close during ABM’s second fiscal quarter of 2026, and it will be funded with cash on hand and existing credit facilities.
While the deal is expected to be modestly dilutive to ABM’s adjusted EPS for fiscal 2026, it is projected to be accretive by $0.05 to $0.07 in fiscal 2027.
This acquisition marks a significant step in ABM’s efforts to strengthen its position in the semiconductor industry, capitalizing on the growing demand for technical services in the sector.