MasTec Acquires Infrastructure And Energy Alternatives For $1.1B

  • MasTec, Inc. MTZ has agreed to acquire Infrastructure & Energy Alternatives Inc IEA all of the outstanding shares in a cash-and-stock transaction valued at $14.00 per IEA share.
  • IEA stockholders will get $14 per share, comprised of $10.50 in cash and 0.0483 of a MasTec share, with a value of $3.50/share, based on MasTec's closing share price on July 22, 2022, and represents a 34% premium to IEA's closing stock price on July 22, 2022.
  • MasTec has agreed with various IEA stockholders, who own ~35% of IEA's outstanding stock, to vote their shares of IEA common stock in favor of the transaction.
  • Total transaction consideration will be ~$1.1 billion. MasTec expects to issue ~2.8 million MasTec shares in the transaction.
  • The transaction is expected to close in late 4Q22 and will be Accretive to MasTec's 2023 Adjusted EPS before synergy benefits, with potential revenue and operational synergies in 2024 and beyond.
  • MasTec held cash and equivalents of $233.13 million as of March 31, 2022.
  • IEA's FY22 Outlooks: IEA is reaffirming its expected revenue range of $2.3 billion to $2.5 billion and net income range of $45 million to $51 million
  • It expects adjusted EBITDA of $140 million to $150 million. 
  • For FY23, MasTec expects IEA to generate revenue between $2.6 billion to $2.7 billion, with adjusted EBITDA of $160 million to $170 million.
  • MasTec expects near-term post-transaction annual cost savings of ~$10 million. MasTec expects IEA to generate ~$45 million to $50 million of adjusted net income in 2023.  
  • MasTec FY22 Guidance: MasTec continues to expect annual revenue of ~$9.2 billion, with full-year GAAP net income and diluted earnings per share of ~$95 million and $1.24, respectively.
  • It expects adjusted EBITDA of $750 million and adjusted diluted earnings per share of ~$3.09.
  • "We continue to expect MasTec legacy operations in 2023 will generate strong revenue and adjusted EBITDA growth and look forward to the expected incremental contribution in 2023 of the IEA acquisition," commented Jose Mas.
  • Price Action: MTZ shares are trading lower by 5.94% at $68.21 and IEA higher by 31.40% at $13.70 on the last check Monday.
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