HOUSTON, Apr. 30, 2015 /PRNewswire/ -- Quanta
Services, Inc. (NYSE: PWR) announced today that it has entered into
a definitive agreement to sell its fiber optic licensing operations
to Crown Castle International Corp. (NYSE: CCI) for approximately
$1 billion in cash. The transaction
is subject to various regulatory approvals and other customary
conditions prior to closing, but is expected to close by the end of
this year. Quanta estimates after tax net proceeds from the
transaction of approximately $800
million. J.P. Morgan Securities LLC served as exclusive
financial advisor to Quanta for the transaction.
"This transaction enables us to enhance our strategic focus on
energy infrastructure markets, which we believe will undergo
substantial development in the coming years. Further, we believe
the attractive market valuations for fiber assets provide us the
opportunity to unlock the value of our fiber optic licensing
operations. The purchase price represents a 15 times trailing
EBITDA multiple, which recognizes the significant value these
operations have created as part of Quanta Services," said
Jim O'Neil, president and chief
executive officer of Quanta Services. "I would like to thank
all of our fiber optic licensing operations employees for their
contributions to our organization over the years."
Quanta believes there is opportunity to create incremental
shareholder value by using the proceeds from this transaction to
repurchase its common stock, acquire energy infrastructure services
companies and/or make other strategic investments. While the
company will continue to evaluate all the opportunities it believes
could create shareholder value going forward, it expects to use the
proceeds for a combination of these purposes. Since
January 1, 2014, Quanta has invested
approximately $322 million in cash to
acquire companies and approximately $275
million in cash to repurchase shares of its common
stock.
As the timing of the close of the transaction with Crown Castle
is uncertain, Quanta's financial outlook includes the contribution
of our fiber optic licensing operations for the entire year. For
the twelve month period ending December 31,
2015, Quanta's fiber optic licensing operations are
estimated to generate approximately $105
million to $110 million in revenue and $0.12 to $0.13 in diluted earnings per share.
About Quanta Services
Quanta Services is a leading
specialized contracting services company, delivering infrastructure
solutions for the electric power and oil and gas industries.
Quanta's comprehensive services include designing, installing,
repairing and maintaining energy infrastructure. Additionally, in
certain markets, Quanta licenses fiber optic telecommunications
infrastructure, offers lit network management services and provides
related design, procurement, construction and maintenance services.
With operations throughout the United
States, Canada and
Australia and in select other
international markets, Quanta has the manpower, resources and
expertise to safely complete projects that are local, regional,
national or international in scope. For more information, visit
www.quantaservices.com.
Forward-Looking Statements
This press release (and any
oral statements regarding the subject matter of this press release)
contains forward-looking statements intended to qualify for the
"safe harbor" from liability established by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements
include, but are not limited to, the potential benefits of the
transaction; the projected gains or net proceeds of the transaction
or any expected value associated with the transaction; expectations
regarding the use of proceeds; the anticipated closing date for the
transaction; projected revenues, earnings per share, margins,
capital expenditures, and other projections of operating or
financial results; expectations regarding the business outlook,
growth or opportunities in particular markets; Quanta's plans and
strategies; and prospective growth in the demand for electric power
and oil and gas infrastructure; as well as statements reflecting
expectations, intentions, assumptions or beliefs about future
events and other statements that do not relate strictly to
historical or current facts. Although Quanta's management
believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. These statements can
be affected by inaccurate assumptions and by known or unknown risks
and uncertainties that are difficult to predict or beyond the
control of Quanta, including, among others, the possibility that
one or more closing conditions for the transaction may not be
satisfied or waived; the possibility that one or more regulatory
approvals required prior to closing the transaction may not be
obtained; the effects of disruption from the transaction; the
effects of industry, economic or political conditions outside of
the control of Quanta; the failure to realize the anticipated value
of the transaction; quarterly variations in operating results;
adverse economic and financial conditions, including weakness in
the capital markets; the potential for claims or damages associated
with the transaction, including as a result of indemnity claims
following closing of the transaction; trends and growth
opportunities in the industries Quanta serves; the effect of
natural gas, natural gas liquids and oil prices on Quanta's
customers' capital programs and the resulting impact on demand for
services and growth opportunities; the future development of
natural resources in unconventional shale formations; Quanta's
ability to generate internal growth; competition in Quanta's
business, including the ability to effectively compete for new
projects and market share; estimates and assumptions in determining
financial results; risks associated with Quanta's fiber optic
licensing business, including regulatory and tax changes and the
potential inability to realize a return on capital investments; and
other risks and uncertainties detailed in Quanta's Annual Report on
Form 10-K for the year ended December 31,
2014, and any other documents filed by Quanta with the
Securities and Exchange Commission (SEC). For a discussion of
these risks, uncertainties and assumptions, investors are urged to
refer to Quanta's documents filed with the SEC that are available
through the company's website at www.quantaservices.com or through
the SEC's Electronic Data Gathering and Analysis Retrieval System
(EDGAR) at www.sec.gov. Should one or more of these risks
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those expressed or implied
in any forward-looking statements. Investors are cautioned not to
place undue reliance on these forward-looking statements, which are
current only as of the date of this press release. Quanta
does not undertake and expressly disclaims any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Quanta further
expressly disclaims any written or oral statements made by any
third party regarding the subject matter of this press release.
Investors - Kip Rupp,
CFA
|
Media - Deborah Buks
and Molly LeCronier
|
Quanta Services,
Inc.
|
Ward Creative
Communications
|
713-341-7260
|
713-869-0707
|
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SOURCE Quanta Services, Inc.