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.