Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 273

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 273
---
 31, 2024, the purchase accounting was completed for all 2023 acquisitions without any material measurement period adjustments. F-32

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Goodwill arising from acquisitions is derived largely from expected synergies and growth as
well as the acquired assembled workforces. Goodwill is deductible for tax purposes for the A.O. Reed and OCI acquisitions. Goodwill is not deductible for tax purposes for the San Jose Boiler acquisition.

Total Acquisition-related costs of $3.8 million were incurred during the year ended December 31, 2023, including $2.0 million
for A.O. Reed, $1.0 million for OCI and $0.5 million for San Jose Boiler. These costs are included within Acquisition-related costs in the Consolidated Statements of Operations for the year ended December 31, 2023.

2022 Acquisitions:

On July 1, 2022,
the Company acquired all the outstanding equity of Black Bear Energy, Inc. (“Black Bear”). Black Bear is an energy and sustainability consulting firm based in Colorado. The acquisition expands the Company’s technical capabilities,
especially in clean energy procurement and implementation strategies, and geographic footprint. The seller is entitled to earnouts for attainment of targeted EBITDA, as defined in the purchase agreement, for the years ending December 31, 2022
and 2023 up to $5.0 million and $45.0 million, respectively. If the 2022 earnout target was not met, then the 2023 earnout maximum increased by $5.0 million to $50.0 million. At the option of the Company, fifty percent of the
2023 earnout may be paid in Parent interests. The acquisition-date fair value of the contingent consideration was $18.5 million, consisting of $2.3 million and $16.2 million for earnout years ended December 31, 2022 and 2023,
respectively. The Black Bear operations and associated goodwill are included in the Engineering & Consulting segment.

On
November 1, 2022, the Company acquired all of the outstanding equity of Shadpour Consulting Engineers, LP (“SC Engineers”). SC Engineers is a consulting engineering firm based in California. The acquisition expands the
Company’s geographic footprint and technical capabilities to priority end markets. A 6-year promissory note payable was issued with a face amount of $10