Legence Stock Climbs After Closing $475M Bowers Acquisition
The strategic deal adds ~$767M in revenue and deepens the company's reach into the lucrative data center and life sciences construction markets.
Legence Corp. (NASDAQ: LGN) saw its shares climb nearly 4% in Tuesday trading after the energy and sustainability solutions provider finalized its acquisition of the Bowers Group, a large-scale mechanical contractor with significant operations in high-growth data center and life sciences markets.
The deal, valued at approximately $475 million, marks a pivotal expansion for Legence, deepening its footprint in the critical "Data Center Alley" of Northern Virginia. The acquisition adds Bowers' roughly $767 million in annual revenue and a substantial $1.3 billion in project backlog to Legence's portfolio, significantly enhancing its scale and service capabilities.
Shares of Legence responded positively to the news, rising 3.81% to close at $44.68. The move underscores investor confidence in the acquisition's strategic value, which is expected to bolster Legence's position as an integrated provider for technically complex and mission-critical facilities. The company, which has a market capitalization of approximately $1.83 billion, has seen its stock trade between $26.96 and $50.20 over the past year.
Under the terms of the agreement, the $475 million transaction consists of $325 million in cash, approximately $100 million in Legence Class A common stock, and a deferred payment of $50 million. Legence financed the cash portion through a combination of cash on hand and its credit facilities, as detailed in company announcements.
The acquisition is a cornerstone of Legence's strategy to provide comprehensive, end-to-end solutions for the entire lifecycle of complex buildings. Bowers, a premier mechanical contractor founded in 1984, brings a highly-skilled team of 1,700 professionals and a strong reputation in the Washington D.C. metropolitan area. This expertise in mechanical and plumbing systems for sophisticated clients, including data centers and healthcare facilities, complements Legence's existing strengths in energy efficiency and sustainable infrastructure.
"The addition of Bowers is a major step in our strategy to deliver integrated, cutting-edge solutions for the world's most sophisticated buildings," said Jeff Sprau, CEO of Legence. "Their leadership in the data center construction space is a perfect complement to our existing service portfolio, allowing us to provide a more comprehensive offering to our clients as they build out the infrastructure for the digital economy."
The strategic importance of the Northern Virginia market cannot be overstated. As the world's largest concentration of data centers, the region is a crucial hub for the digital economy. Bowers' established presence there provides Legence with a significant competitive advantage. The deal also adds over 370,000 square feet of mechanical fabrication capacity, a key asset for accelerating project delivery times and improving efficiency, particularly for the fast-paced data center sector as reported by regional tech publications.
For the full calendar year of 2026, Bowers is projected to generate between $825 million and $875 million in revenue and contribute $75 million to $85 million in non-GAAP EBITDA, according to analyst projections. This influx of revenue and a strong backlog provide clear visibility into future growth for Legence.
The acquisition of Bowers is the latest in a series of strategic purchases for Legence, a company backed by private equity giant Blackstone that went public in September 2025. This consistent "buy-and-build" strategy has allowed Legence to rapidly expand its service offerings and geographic reach, assembling a suite of specialized firms to tackle the growing demand for sustainable and high-performance building systems.
"Joining Legence is a tremendous opportunity for our people and our clients," Rich Harrington, CEO of Bowers, said in a statement. "We can now leverage a national platform and a broader set of resources to pursue larger, more complex projects while continuing to deliver the quality and service our clients have come to expect."
As businesses and governments increasingly focus on decarbonization and energy efficiency, Legence's expanded capabilities position it to capitalize on the long-term trend of upgrading and retrofitting the nation's building stock for a more sustainable future. The integration of Bowers' mechanical expertise with Legence's sustainability consulting and energy management services creates a powerful, unified offering for property owners and developers navigating this transition.