Quanta Services Acquires Stronghold
Quanta Services, Inc. has finalized the acquisition of Stronghold, Ltd. and Stronghold Specialty, Ltd. (Stronghold), a leading specialized services company that provides high pressure and critical path solutions to the downstream and midstream energy markets. Headquartered in La Porte, Texas, Stronghold has a strong presence in the strategically important Gulf Coast refinery and petrochemical market and serves nearly all regions of the United States.
“We remain positive on our 2017 and multiyear outlook and believe Stronghold is a strategic acquisition that will allow us to capture a greater portion of the energy industry operating and capital spend,” said Duke Austin, President and Chief Executive Officer of Quanta Services. “With positive industry dynamics, visible cross-selling opportunities and Quanta’s support, we believe there is a multiyear opportunity for Stronghold’s operations to achieve double digit growth.”
The transaction consideration includes an upfront payment of approximately $450 million, comprised of $360 million of cash and 2.7 million shares of Quanta Services common stock valued at approximately $90 million, with a cash and stock earnout that could provide maximum additional consideration of $100 million if cumulative three-year EBITDA targets are achieved. The allocation of the purchase price is preliminary and subject to change.
“Quanta is an ideal cultural and strategic fit for Stronghold, and we are excited to join the Quanta family,” said Joe Durham, Chief Executive Officer of Stronghold. “Both companies are committed to safety, our employees and our customers, which provide the foundation for success. Joining Quanta will provide significant resources to Stronghold as we look to build on our history of profitable growth and meet the growing needs of our customers in the years ahead.”
Stronghold’s existing management team will remain in place, with founder Joe Durham continuing in his leadership role as the company’s Chief Executive Officer.
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