8-KMaterial AgreementsSecurities & ListingRegulation FD+1

QUANTA SERVICES, INC. 8-K Report, Material Agreement (Sep 8, 2021)

Filed September 8, 2021For Securities:PWR

Summary

Quanta Services, Inc. (PWR) announced a significant development in its strategic growth through a definitive agreement to merge with Blattner Holding Company. This acquisition, valued at approximately $2.7 billion, is structured with a cash component of roughly $2.36 billion and $337.5 million in Quanta common stock. An additional performance-based consideration of up to $300 million may be paid, contingent on the acquired business meeting specific financial targets post-acquisition. This transaction is a key step in Quanta's expansion strategy, likely enhancing its capabilities and market presence within its industry. The company intends to finance the cash portion of the deal through a combination of existing cash and debt financing, including a committed bridge facility of up to $2.1835 billion. The merger is anticipated to close in Quanta's fourth fiscal quarter of 2021, subject to customary closing conditions, including regulatory approvals.

Key Highlights

  • 1Quanta Services (PWR) to acquire Blattner Holding Company for approximately $2.7 billion.
  • 2Transaction consideration includes $2.36 billion in cash and $337.5 million in PWR common stock.
  • 3Potential for up to $300 million in additional performance-based consideration.
  • 4Acquisition is expected to be financed through debt and existing cash.
  • 5A $2.1835 billion bridge loan commitment has been secured for the cash portion.
  • 6The merger is anticipated to close in Q4 fiscal year 2021, pending regulatory and other closing conditions.
  • 7The issued shares for the transaction are expected to be made under an exemption from registration pursuant to Section 4(a)(2) of the Securities Act.

Frequently Asked Questions

This 8-K filing announces Quanta Services, Inc.'s entry into a Material Definitive Agreement for the acquisition of Blattner Holding Company, detailing the terms of the merger and related financing arrangements.

The acquisition of Blattner Holding Company is valued at approximately $2.7 billion. This consideration will be paid through approximately $2.36 billion in cash and $337.5 million in Quanta Services common stock. There is also potential for an additional $300 million in performance-based earn-out payments.

Quanta Services intends to finance the cash portion of the acquisition using a combination of existing cash on hand and debt financing. They have secured a commitment for a $2.1835 billion bridge facility to cover the cash consideration and related expenses, though they expect to seek permanent financing before closing.

The transaction is expected to close in Quanta Services' fourth fiscal quarter of 2021, subject to the satisfaction of customary closing conditions, which include obtaining necessary regulatory approvals, such as antitrust clearance under the Hart-Scott-Rodino Act.