MasTec To Acquire Henkels & McCoy For $600M

MasTec, Inc. MTZ has agreed to acquire Henkels & McCoy Group Inc. for total consideration of $600 million. The purchase price consists of ~$420 million in cash, including the repayment of Henkels' debt, plus ~2 million MasTec shares.

• Founded in 1923, Henkels is a U.S. private electrical power transmission and distribution utility services firm with ~$1.5 billion FY21 revenue.
• The transaction supports MasTec's long-term strategy to expand in the electric utility services market with incremental recurring master service agreement revenue.
• MasTec expects post-acquisition leverage metrics to remain comfortably within its target range with ample liquidity.
• The company expects significant revenue and operating margin opportunities to materialize from this combination.
• MasTec funded the cash part of the deal with cash on hand and borrowings. It held cash and equivalents of $239.92 million as of September 30, 2021.
• The company expects the transaction to close by year-end 2021.
• Price Action: MTZ shares are trading higher by 0.64% at $87.08 on the last check Monday.