MasTec, Inc. (NYSE: MTZ) has closed its acquisition of Henkels & McCoy Group, Inc., one of largest U.S. utility contractors with 5,100 employees and $1.5 billion in annual revenue, in a cash and stock transaction valued at $600 million. The acquisition increases diversification, as well as providing increased market share, according to Jose Mas, MasTec’s Chief Executive Officer, supporting MasTec’s long-term strategy to expand in the electric utility services market.
“This marks an important step in the diversification of MasTec’s end market portfolio of services, providing us with strong strategic growth opportunities,” Mas said. “We believe the transition to renewable power generation will create significant growth demand across the utility sector.”
With 22,000 employees, Mastec is a multinational infrastructure engineering and construction company based in Coral Gables, FL, which provides engineering, building, installation, maintenance and upgrade of energy, utility, and communications infrastructure.
“We believe that the addition of Henkels, coupled with MasTec’s existing operations, creates a market leading utility contractor with significant expertise, scale and capacity that can provide a complete and compelling suite of service offerings to our customers,” Mas added.
Total transaction consideration includes $420 million in cash, including the repayment of Henkels’ debt, plus two million shares of MasTec common stock. Cash will be provided by MasTec’s cash on hand, as well as borrowing under its existing unsecured credit facility. MasTec said that it anticipates that post-acquisition leverage metrics will remain within its target range with ample liquidity.
By J. Sharpe Smith, Inside Towers Technology Editor
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