Quanta Services Inc. announced Sept. 9 that it completed three strategic acquisitions for approximately $328 million in cash and approximately $2 million in stock.
Quanta acquired Plainview, N.Y.-based gas utility contractor The Hallen Construction Co. Inc., which serves key U.S. northeast markets. Quanta said it can also make use of Hallen's utility services platform in the northeast to further expand its electric infrastructure services offering.
The acquisition will help Texas-headquartered Quanta achieve its medium-term target operating income margins of upper single digits for the Pipeline and Industrial Infrastructure Services segment.
Additionally, Quanta completed the acquisitions of two specialty utility foundation and pole-setting contractors serving the southeastern U.S., according to a Sept. 9 release.
Quanta estimates these acquisitions will contribute approximately $175 million of revenue in 2019 and be accretive to 2019 adjusted EPS expectations by approximately 6 cents. For 2020, Quanta estimates the acquired businesses will contribute revenues in the range of $525 million to $575 million, "modest" GAAP EPS accretion due to amortization expense and adjusted EPS accretion of "at least" 20 cents, according to a news release.
