Quanta Services To Buy Blattner Holding In $2.7 Bln Deal - Quick Facts

(RTTNews) - Quanta Services Inc. (PWR), a specialized contracting services company, announced Thursday that it has entered into a definitive agreement to acquire Blattner Holding Co., an utility-scale renewable energy infrastructure solutions provider in North America. The deal consideration, to be paid at closing, is around $2.7 billion.

The consideration will consist of approximately $2.36 billion in cash, subject to a working capital adjustment, as well as shares of Quanta common stock valued at approximately $340 million.

Additionally, pursuant to the terms of the definitive agreement, Blattner owners will be eligible for an earnout payment that could provide additional consideration of up to $300 million, to the extent certain financial performance targets are achieved.

The transaction has been unanimously approved by the Board of Directors of both Quanta and Blattner. The deal and is expected to close in the fourth quarter of 2021, subject to receiving required regulatory approvals and the satisfaction of other customary closing conditions.

Following the acquisition, Blattner's financial contribution is expected to be accretive to Quanta's growth, margins, cash flow conversion and earnings per share.

For the full year of 2022, Quanta estimates revenues for Blattner to be between $2.5 billion and $2.7 billion, adjusted EBITDA to be between $250 million and $290 million and its contribution to adjusted earnings per share to be between $0.80 and $1.00.

Blattner will serve as a platform operating unit of Quanta, and its existing management team will remain in place, with Scott Blattner continuing in his leadership role as President.