Group offers to invest in Limbach Holdings

An investment group is offering to invest $35 million in the struggling Pittsburgh-based construction contractor Limbach Holdings in return for four of seven seats on the board.

The offer — contained in a filing with the Securities and Exchange Commission on July 31 — is for $35 million worth of common stock at $3.85 per share, implying the purchase of 9.1 million shares. Limbach currently has about 7.8 million shares outstanding.

The offer is being made by Brian L. Pratt — former CEO of Primoris Services Corp., a contracting company in Dallas — and an unnamed investment company.

Mr. Pratt currently owns 1.5 million shares of Limbach stock accumulated from Feb. 19-March 31, 2020, for about $5.8 million, for a roughly 19% stake in the company, according to SEC filings.

Neither Mr. Pratt nor Limbach Holdings, whose chairman is Gordon G. Pratt, returned phone calls seeking comment.

On Tuesday, Limbach issued a statement responding to the proposed equity investment, saying the company was focused on “maximizing value for all of our stockholders.”

“As a company, we believe Limbach continues to combat the challenges posed by the COVID-19 pandemic. Many of our services continue to remain essential during the pandemic and we continue to execute on project backlog and service work,” Limbach Holdings CEO Charles Bacon said in the statement.

The company is set to release second-quarter financial results after the close of the stock market on Aug. 13.

In the first quarter, Limbach reported a loss of $52,000, or 1 cent per share. In 2019, the company lost $1.8 million versus a loss of $4 million in 2018.

Founded in 1901 as a one-man roofing and sheet metal operation, Limbach Holdings builds hospitals, stadiums, hotels, schools and industrial buildings. The company has been involved in building the Civic Arena, Three Rivers Stadium, the David L. Lawrence Convention Center and PNC Park.