Houston, October 25, 2010 – Quanta Services, Inc. signed a definitive agreement to acquire Valard Construction, one of Canada’s largest electric power line contractors.
The transaction is valued at about $219 million, which is inclusive of any debt repaid at closing. The acquisition strategically expands Quanta‘s Canadian service offering and provides Valard’s 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 about $118.9 million in cash and an aggregate of about 4.5 million in common and exchangeable shares.
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 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.
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.