Wind turbines in Illinois, USA. Author: Tom. License: Creative Commons. Attribution 2.0 Generic.
Quanta Services Inc (NYSE:PWR) has struck a deal worth up to USD 3 billion (EUR 2.53bn) to take over Blattner Holding Company, which provides front-end engineering, procurement, project management and construction services to the renewable energy industry.
The specialised contracting services company has agreed to acquire Blattner in exchange for about USD 2.36 billion in cash and USD 340 million worth of Quanta common stock. Moreover, if certain financial performance targets are achieved, Blattner’s current owners will be eligible for an earn-out payment of up to USD 300 million. The acquisition is scheduled to close in the final quarter of 2021, subject to regulatory clearance.
Based in Avon, Minnesota, Blattner serves developers of wind, solar and energy storage projects in North America. It is the parent of Blattner Energy Inc and D.H. Blattner & Sons Inc. To date, the company has completed or been awarded more than 300 wind projects surpassing 49 GW of installed generating capacity, over 90 solar projects exceeding 12 GW and 17 energy storage projects. Last year, the business generated revenues of some USD 2.4 billion and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 291 million.
Quanta expects the deal to increase its exposure to the large and growing utility-scale renewable energy markets, accelerate near- and long-term growth drivers and boost its capabilities to deliver infrastructure solutions. The buyer also expects Blattner to contribute between USD 2.5 billion and USD 2.7 billion to revenues next year, as well as between USD 250 million and USD 290 million to adjusted EBITDA and between USD 0.80 and USD 1.00 to adjusted diluted earnings per share.
“Blattner will bring an exceptional management team that we believe will enhance our ability to collaborate with our customers to shape North America's energy transition to a carbon-neutral economy. Blattner has a strong and visible project backlog, and we believe their financial contribution will be accretive to Quanta's growth, margins, cash flow conversion and earnings per share,” commented Duke Austin, Quanta's president and CEO.
Lazard acts as financial advisor and Latham & Watkins LLP as legal advisor to Quanta, while JP Morgan Securities LLC serves as exclusive financial advisor to Blattner.