MasTec Acquires WesTower

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MasTec, a leading infrastructure construction company, has acquired telecommunications services firm WesTower for $199 million. WesTower’s operations have experienced significant revenue expansion, growing from approximately $100 million in annual revenues in 2010, to approximately $450 million in projected revenues in 2014. In the transaction, MasTec acquired all of the issued and outstanding equity interests of WesTower for a one-time payment of approximately $199 million in cash, subject to customary purchase price adjustments. At closing, WesTower had approximately $159 million in tangible net worth, comprised mostly of working capital of $151 million, including approximately $18 million in cash. Jose Mas, MasTec’s Chief Executive Officer, commented, “We are very excited about the geographic expansion, increased market penetration and skilled employee base that WesTower adds to our existing wireless operations. WesTower’s current operating margin and working capital levels are indicative of industry-wide challenges managing the complexities of rapid growth in wireless construction services. These are challenges which MasTec faced and overcame in our existing wireless operations through the development of our processes and systems, which we believe to be a competitive advantage. We are in a unique position to improve WesTower’s post-acquisition operating results and working capital efficiency, and expect to expand margins, reduce working capital requirements and grow the combined business with multiple customers.”

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