City of Industry-based electrical and data giant Morrow-Meadows Corp. recently announced plans to purchase Santa Fe Springs-based Pacific Data Electric Inc., an energy storage firm with a toehold in an emerging multibillion-dollar market.
Terms of the transaction were not disclosed. The acquisition, which Morrow-Meadows’ President Robert Meadows said is the company’s largest, is expected to close in February.
Morrow Meadows reported just under $600 million in revenue in 2019 and has more than 2,100 employees, according to Meadows. He also said it is the 11th largest electrical contractor in the United States.
Morrow-Meadows, which also claims to be the largest electrical contractor in Southern California, installs electrical cabling and fiber optic lines in buildings that run computer and data systems.
The company’s last major acquisition came in 2015 when it purchased Tustin-based electrical engineering firm R.E. Wall and Associates Inc. Other small electrical contractor firms in Northern California and Oregon have since been purchased, but Pacific Data Electric is the biggest, Meadows said in an interview.
“This business merger will enable us to leverage new, innovative business opportunities both domestically and globally to meet and respond to the changing needs of the energy sector,” Meadows said.
Pacific Data Electric will operate under the new name of PDE Total Energy Solutions, a division of Morrow-Meadows.
PDE Total Energy Solutions hopes to expand its battery energy storage systems business once the financial muscle of Morrow-Meadows is in place.
“PDE is really ahead of the curve in the energy storage area,” Meadows said. “We plan to expand domestically and internationally in the area of energy storage.”
He cited a recent report prepared by Washington, D.C.-based Energy Storage Association and Edinburgh, Scotland-based Wood Mackenzie Power & Renewables that estimates the energy storage market – and lithium batteries in particular – will grow into a $4.6 billion market by 2023.
The U.S. energy storage market is expected to grow to $541 million in 2019 before crossing the billion-dollar threshold in 2019, according to the report.
“This market is about to explode,” Meadows observed.
Morrow-Meadows is No. 51 on the Business Journal’s list of 150 largest private companies in Los Angeles County and No. 5 on the list of the largest telecommunications companies in L.A. County.
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