Legence Finalizes $475M Bowers Deal, Forging a DC Metro MEP Powerhouse

SAN JOSE, Calif. – January 02, 2026 – Legence Corp. (Nasdaq: LGN) today announced it has officially completed its acquisition of The Bowers Group, a highly-regarded mechanical contractor based in Beltsville, Maryland. The move, valued at approximately $475 million, strategically combines two industry leaders to create a formidable player in the high-stakes market of mission-critical building systems, particularly within the bustling Northern Virginia and DC Metro corridor.

The acquisition solidifies Legence’s position as a comprehensive provider of engineering, installation, and maintenance services for the complex facilities that power the modern economy. By integrating Bowers' four decades of specialized mechanical, plumbing, and process system expertise, Legence significantly deepens its capabilities in one of the nation's most demanding real estate markets.

“We are excited to officially welcome Bowers to the Legence organization and look forward to combining our expertise to enhance our service offering for our valued customers,” said Jeff Sprau, Chief Executive Officer of Legence, in a statement. “The completion of this acquisition marks an important milestone in our growth strategy, and we are confident that together, we will achieve even greater success.”

A Strategic Power Play in a High-Stakes Market

The financial structure of the deal underscores its strategic importance. The transaction consisted of an upfront cash payment of $325 million, supplemented by the issuance of approximately 2.55 million shares of Legence's Class A common stock, which were valued at around $100 million at the time of the agreement. An additional $50 million in deferred consideration is slated for payment at the end of 2026, which Legence may pay in cash or stock at its discretion.

To fund the substantial cash portion, Legence utilized a combination of cash on hand, borrowings from its revolving line of credit, and a notable $200 million upsizing of its term loan facility. This financial maneuvering results in a pro forma net leverage of approximately 2.9x for Legence, a significant but calculated investment in future growth. The company, which boasts a market capitalization of $4.53 billion, appears well-positioned to absorb the debt.

The investment is backed by Bowers’ impressive financial performance and robust project pipeline. For the twelve months ending September 30, 2025, Bowers generated approximately $767 million in revenue and $72 million in non-GAAP EBITDA. Looking ahead, Legence projects that Bowers will generate between $825 million and $875 million in revenue for the 2026 calendar year. Furthermore, Bowers brings a massive backlog and awarded contracts estimated at $1.3 billion, providing immediate and long-term revenue visibility for the combined entity.

Forging an East Coast Infrastructure Giant

This acquisition reshapes the competitive landscape for mechanical, electrical, and plumbing (MEP) services on the East Coast. The DC Metro area is a fiercely competitive market, home to major national players like Southland Industries and EMCOR. By acquiring Bowers, a premier regional contractor, Legence not only gains a significant foothold but also an established reputation and deep client relationships in specialized sectors.

Bowers is a dominant force in the region's famed “Data Center Alley,” providing critical mechanical systems for the facilities that form the backbone of the internet. Combining this with Legence’s own extensive experience in engineering and electrical systems for a client base that already includes over 60% of the Nasdaq-100 creates a powerful, integrated service offering. This synergy allows the company to provide end-to-end solutions for the most technically demanding projects, from design and fabrication to installation and long-term maintenance.

The deal's impact extends beyond the DC region. The acquisition includes over 370,000 square feet of advanced fabrication capacity. Legence has announced plans to leverage these facilities to serve clients not only in the Mid-Atlantic but also across the East Coast, Southeast, and Midwest, signaling an ambition to enhance operational efficiency and project delivery on a much broader scale.

Local Impact and Leadership Continuity

For the Northern Virginia and DC Metro construction market, the merger marks the arrival of a new MEP giant. Bowers has been a cornerstone of local development for decades, with a portfolio of complex, high-profile projects. These include the $55 million mechanical scope for the Capital One tower in Tysons Corner and a $40 million design-assist role for a sophisticated office and data center complex in Rockville, Maryland, which required a complex Central Utility Plant for cooling.

Crucially, Legence has structured the deal to ensure operational stability and retain invaluable institutional knowledge. Bowers’ senior management team, whose members have an average tenure of over 20 years with the company, will remain in place to lead the division. This move is expected to reassure both the 1,700-person workforce, composed largely of union craftspeople, and a loyal client base that has relied on Bowers' expertise for years.

Bowers' leadership has reportedly expressed optimism about the acquisition, viewing it as a tremendous opportunity for its employees to access the resources and expertise of a larger national platform. The prevailing sentiment is that the combination will foster innovation and enable the team to take on even more ambitious projects, creating new avenues for professional growth within the expanded organization.

Driving the Future of Sustainable and Mission-Critical Buildings

Beyond market share and revenue, the acquisition aligns with a powerful industry trend: the growing demand for sustainable, energy-efficient, and resilient buildings. Legence has built its brand on delivering solutions that enhance energy efficiency and reliability. The integration of Bowers, with its deep expertise in complex HVAC and process piping systems, is set to accelerate this mission.

The technical challenges of modern facilities, especially data centers with high-density cooling requirements, demand sophisticated and innovative engineering. The combined expertise of Legence and Bowers is uniquely positioned to develop and implement next-generation solutions in green building and smart infrastructure. By controlling more of the value chain—from initial design and engineering to fabrication and installation—the company can more effectively drive sustainable practices and ensure that facilities are not only powerful and reliable but also environmentally responsible.

For the blue-chip companies and technically demanding sectors that Legence and Bowers serve, this enhanced capability promises facilities that are built for the future. The merger is more than a consolidation of market power; it represents a strategic alignment of capabilities aimed at setting new standards for performance and sustainability in the world’s most critical infrastructure.