ALLENTOWN, Pa.---PP&L Resources, Inc. (NYSE: PPL) announced Thursday (1/14) that it has reached an agreement to acquire one of the premier providers of mechanical services to large industrial and commercial customers in western Pennsylvania.

William F. Hecht, chairman, president and chief executive officer of PP&L Resources, Inc., said the acquisition of McCarl's Inc. will further expand PP&L Resources' ability to offer process piping, energy management, heating, ventilating and air conditioning services to large industrial and commercial customers. McCarl's is headquartered in Beaver Falls and serves customers in the tri-state area comprised of Pennsylvania, Ohio and West Virginia.

Hecht said McCarl's, which has average annual revenues of about $50 million, will retain its name and operate as a subsidiary of PP&L Resources, Inc., with Jim McCarl continuing as president and chief executive officer.

Hecht said adding McCarl's to the PP&L Resources, Inc. family of companies is an excellent way for PP&L Resources to further expand its full-service energy business, which it is marketing under the PP&L EnergyPlus ^TM brand.

"Large commercial and industrial customers throughout Pennsylvania and neighboring states are very interested in a wide range of energy services as they have more choices in the changing energy marketplace," said Hecht. "We are committed to expanding our capabilities to meet these important needs.

"McCarl's brings to PP&L Resources its ablity to prvide mechanical services to large industrial and commercial customers with the capability to deliver services in the Pittsburgh area and beyond," said Hecht. "McCarl's will complement PP&L Resources' other HVAC subsidiaries, H. T. Lyons, In. and McClure Company. These three companies -- together with our subsidiaries PP&L, Inc., PP&L EnergyPlus Co., PP&L Spectrum, Inc. and Penn Fuel Gas, Inc. -- will enable us to offer serices ranging from energy supply and management services to the design and construction of heating, ventilating and air-conditioning systems and process piping systems.

"McCarl's has a strong, impressive customer base and a 53-year history of roviding quality services. We are very pleased to welcome McCarl's Inc., Jim McCarl himself and the entire outstanding McCarl's team to the PP&L Resources family of companies," said Hecht.

"This is a bright day for McCarl's, its customers and its employees," said F. James McCarl, president and chief executive officer of McCarl's Inc. "PP&L Resurces' proven commitment to high-quality customer service and its outstanding reputation make this a natural fit. It will enable us to continue and enhance the McCarl Way b of performing business."

Founded in 1946, McCarl's Inc. provides both construction and maintenance services related to air conditioning, heating, plumbing and process piping. McCarl's Inc. operates in western Pennsylvania, Ohio and West Virginia.

McCarl's employs about 400 employees. The terms of the purchase agreement were not disclosed. The closing of the acquisition, which is subject to the expiration of the antitrust waiting period and satisfaction of certain other closing conditions, is expected to occur in about a month.

PP&L EnergyPlus is not the same company as PP&L, Inc., the electric distribution company. PP&L EnergyPlus prices are not regulated by the Pennsylvania Public Utility Commission. You do not have to buy electricity or other products from PP&L EnergyPlus to receive the same quality service from PP&L, Inc.