APi Group (APG) Completes Acquisition of Elevated Facility Services Group, Updates Guidance

APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today announced that it has completed its previously announced acquisition of Elevated Facility Services Group (“Elevated”) from a fund managed by L Squared Capital Partners for approximately $570 million.

Headquartered in Tampa, Florida, Elevated has approximately 600 leaders and serves customers in over 18 states. Elevated is a premier provider of contractually based services for all major brands of elevator and escalator equipment. Elevated is expected to contribute approximately $220 million in annual revenue at an approximate 20% adjusted EBITDA margin.

Russ Becker, APi’s President and Chief Executive Officer stated: “Today we welcome our 600 new teammates to the APi family and begin our work leveraging the opportunities created by this acquisition. We are excited to collaborate with Elevated and its talented leadership team as we expand into the $10+ billion U.S. elevator and escalator services market. This acquisition further strengthens APi’s financial profile and represents a continuation of our focus on building a robust line of businesses that provide mandatorily required life safety services."

Becker continued, “We believe there is a long runway of opportunity for Elevated to grow organically and through acquisition. The strength of our balance sheet today and our track record executing complementary bolt-on M&A over the last 20 years makes APi the perfect owner to help Elevated accelerate its growth in the fragmented elevator and escalator services market. We expect the second half of 2024 to bring record profitability and a return to strong organic revenue growth. Our updated full year guidance for net revenues including Elevated represents reported revenue growth of approximately 7% to 11% and organic revenue growth of approximately 5% to 9% in the back half of year.”

2024 Full Year Guidance

APi is raising its full year net revenue and adjusted EBITDA guidance.

• Net Revenues of $7,150 to $7,350 million, up from $7,050 to $7,250 million
• Adjusted EBITDA of $875 to $925 million, up from $855 to $905 million
• Adjusted Free Cash Flow Conversion of approximately 70% remains unchanged

APi now expects full year 2024 interest expense to be approximately $145 million, down from $150 million. Prior expectations for full year 2024 depreciation of approximately $80 million, capital expenditures of approximately $95 million, adjusted effective tax rate of approximately 23% and adjusted weighted average share count of approximately 279 million remain unchanged.

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