Quanta Services To Acquire Blattner Holding For $2.7B

  • Quanta Services Inc PWR has agreed to acquire Blattner Holding Company, an utility-scale renewable energy infrastructure solutions provider in North America, for consideration of ~$2.7 billion.
  • The transaction consideration consists of ~$2.36 billion in cash and ~$340 million of Quanta common stock.
  • Blattner owners will be eligible for an earnout payment that could provide additional consideration of up to $300 million.
  • The Avon, Minnesota-based Blattner provides front-end engineering, procurement, project management, and construction services for wind, solar, and energy storage projects to renewable energy developers.
  • Blattner is expected to increase Quanta's exposure to utility-scale renewable energy wind, solar, and energy storage markets.
  • Quanta expects Blattner to contribute to revenue, margins, adjusted EBITDA, free cash flow conversion, and EPS in the near and longer term.
  • Blattner generated full-year 2020 revenues of ~$2.4 billion and adjusted EBITDA of $291 million.
  • For FY22, Quanta estimates revenues for Blattner to be $2.5 billion - $2.7 billion, adjusted EBITDA for Blattner to be $250 million - $290 million, and Blattner's contribution (not accretion) to adjusted EPS to be $0.80 - $1.00.
  • Quanta Services held cash and cash equivalents of $212.47 million as of June 30, 2021.
  • The transaction is expected to close in 4Q21.
  • Price Action: PWR shares are trading higher by 9.91% at $111.86 during the premarket session on Thursday.
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