Quanta Services Acquires Valard Construction
October 25 2010 - 06:01AM
PR Newswire (Canada)
HOUSTON, Oct. 25 /CNW/ -- Acquisition expands Canadian presence;
delivers comprehensive infrastructure services to growing Canadian
electric power transmission market Quanta Services, Inc. (NYSE:
PWR) today announced that on Oct. 22, 2010, it signed a definitive
agreement to acquire Valard Construction, one of Canada's largest
electric power line contractors. The transaction, which is expected
to close today, is valued at approximately US$219 million, which is
inclusive of any debt repaid at closing. The acquisition
strategically expands Quanta's Canadian service offering and
provides Valard's diverse customer base with access to Quanta's
extensive energy infrastructure resources. The purchase price for
Valard will be paid through a combination of cash, Quanta common
shares and exchangeable shares of a Canadian subsidiary of Quanta
Services that are substantially equivalent to, and exchangeable on,
a one-for-one basis for Quanta Services common shares. In
connection with the acquisition, the stockholders of Valard will
receive approximately $118.9 million in cash and an aggregate of
approximately 4.5 million in common and exchangeable shares.
"Canada, as the world's second largest exporter of electricity,
presents significant emerging and long-term opportunities to expand
and upgrade the electric transmission infrastructure," said John R.
Colson, chairman and CEO of Quanta Services. "We expect Valard's
revenue to be between $225 million and $250 million in 2011 and the
transaction to be accretive to EPS in 2011 and beyond." Valard,
based out of Edmonton, Alberta, will operate as a platform
operating unit of Quanta, with Victor Budzinski as CEO and Adam
Budzinski as president. Valard's workforce of more than 700
employees delivers full engineering, procurement and construction
(EPC) services and turnkey solutions to the Canadian power
industry. In addition to high-voltage transmission lines, Valard
builds distribution infrastructure, provides EPC services for
substations and installs fiber optic systems. "For more than 30
years, Valard has been safely building and maintaining electric
power infrastructure across some of Canada's most challenging,
rugged terrain, often in arctic conditions," Colson continued. "The
expertise of their team is a welcome addition to our company and
upholds our commitment to deliver value to our stockholders, our
customers and our employees." "As part of the Quanta team, we
believe Valard will be able to deliver additional services through
access to a much larger workforce and vast equipment resources,"
said Adam Budzinski, president of Valard. "It is a logical
combination of resources that builds upon our strong foundation of
safety, value and efficiency to meet the evolving needs of our
customers." About Quanta Services Quanta Services is a leading
specialized contracting services company, delivering infrastructure
solutions for the electric power, natural gas and pipeline and
telecommunication industries. The company's comprehensive services
include designing, installing, repairing and maintaining network
infrastructure nationwide. Additionally, Quanta licenses
point-to-point fiber optic telecommunications infrastructure in
select markets and offers related design, procurement, construction
and maintenance services. With operations throughout North America,
Quanta has the manpower, resources and expertise to complete
projects that are local, regional, national or international in
scope. About Valard Construction Valard is one of Canada's largest
power line contractors, delivering turnkey and construction
services in overhead and underground transmission and distribution
systems, substations, fiber optics and substation and transmission
foundations. Since Valard Construction's incorporation in 1978, the
company has been committed to the successful completion of every
project -- building it safely, on time and on budget. Founded on
the principles of employee inclusion, quality workmanship and an
entrepreneurial spirit, Valard has evolved into one of the largest,
most innovative and respected power line contractors in Canada.
Forward-Looking Statements Statements about Quanta's and Valard's
outlook and all other statements in this release other than
historical facts are forward-looking statements intended to qualify
for the "safe harbor" from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of uncertainties and factors, many of
which are outside Quanta's and Valard's control, which could cause
actual results to differ materially from such statements.
Forward-looking information includes, but is not limited to,
statements regarding Quanta and Valard as a combined company,
including Valard's expected revenues and operating results and
accretion to Quanta's earnings per share as a result of the
transaction, as well as opportunities in the electric power
industry and the expected closing of the transaction. There are a
number of risks and uncertainties that could cause results to
differ materially from those indicated by such forward-looking
statements, including the failure of the acquisition to be
accretive to Quanta's earnings; the failure of Valard to produce
anticipated financial and operational results; the failure of the
electric industry, in particular in Canada, to grow in the future
and the timing of any such growth; the impact on the power
construction industry from various factors, such as the demand for
power and legislative developments affecting the energy industry
overall; the effect on the businesses of Quanta and Valard from the
decline in economic and financial conditions; a delay in the
closing of the transaction or the inability to ultimately
consummate the closing of the transaction; the failure to
effectively integrate the combined operations and realize potential
synergies; unexpected costs or unexpected liabilities that may
arise from the transaction, whether or not consummated; the effects
of purchase accounting, including the determination of amortizable
intangibles, on the combined companies' future operating results;
the potential adverse impact to the businesses of the companies as
a result of uncertainty surrounding the transaction, including the
inability to retain key personnel; future regulatory or legislative
actions that could adversely affect the companies; the ability to
effectively compete for new projects and market share; the
successful negotiation, execution and performance and completion of
existing transmission projects; delays, reductions in scope or
cancellations of existing transmission projects; cancellation
provisions within contracts and the risk that contracts are not
renewed or are replaced on less favorable terms; and the potential
adverse effect of other economic, business, and/or competitive
factors on the combined companies or their respective businesses.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and
uncertainties described in Quanta's Annual Report on Form 10-K for
the fiscal year ended December 31, 2009, its Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010
and its other filings with the Securities and Exchange Commission,
which are available free of charge on the SEC's website at
www.sec.gov and through Quanta's website at www.quantaservices.com.
Quanta expressly disclaims any intention or obligation to revise or
update any forward-looking statements whether as a result of new
information, future events, or otherwise. Quanta Contacts: Investor
Contacts: James Haddox, CFO Kip Rupp Reba Reid DRG&L
713-629-7600 404-880-9276 James Haddox, CFO, or Reba Reid, both of
Quanta Services, Inc., +1-713-629-7600; or Investors, Kip Rupp of
DRG&L, +1-404-880-9276, for Quanta Services, Inc. Web Site:
http://www.quantaservices.com
Copyright
Quanta Services (NYSE:PWR)
Historical Stock Chart
From Feb 2024 to Mar 2024
Quanta Services (NYSE:PWR)
Historical Stock Chart
From Mar 2023 to Mar 2024