Quanta Services Announces Strategic Acquisitions
Quanta Services Inc. announced Sept. 9 that it has completed the acquisition of The Hallen Construction Co. Inc., a leading and sizeable gas utility contractor serving key strategic markets in the northeast United States. Founded in 1927 and headquartered in Plainview, New York, Hallen has strong customer relationships with leading utilities in its markets, primarily providing gas distribution and transmission services and, to a lesser extent, underground electric distribution and transmission services.
Over the past several years, Hallen has achieved solid organic revenue and profit growth by leveraging its operational excellence and working collaboratively with its customers. Additionally, Quanta recently completed the acquisition of two specialty utility foundation and pole-setting contractors serving the southeast United States. The aggregate consideration paid for these companies was approximately $330 million, consisting of approximately $328 million in cash, subject to working capital adjustments, and approximately $2 million in stock.
“We are pleased to announce these acquisitions, as each company provides Quanta with an exceptional management team that enhances our ability to collaborate with our customers on their multi-year programmatic spending plans, and are additive to our more than $7.5 billion of estimated 2019 utility revenues. As a result, we believe these acquisitions provide a repeatable and sustainable earnings profile that is complementary to our business and consistent with our strategy,” said Duke Austin, President and Chief Executive Officer of Quanta Services. “Hallen represents a sizeable expansion into key northeast markets characterized by aged infrastructure and mandatory multi-decade modernization programs that are in their early stages, which we believe improves our long-term visibility and provides attractive multi-year growth opportunities and accretive returns for our stockholders. We welcome the employees of these companies to the Quanta family.”
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