MasTec To Acquire Henkels & McCoy Group For $600 Mln Cash, Stock - Quick Facts

(RTTNews) - MasTec, Inc. (MTZ) announced Monday that it has entered into a definitive agreement to acquire Henkels & McCoy Group Inc., one of the largest U.S. private electrical power transmission and distribution utility services firm.

Founded in 1923, Henkels has been in operation for over 98 years, with approximately $1.5 billion in fiscal 2021 revenue primarily with long tenured relationships across a diverse blue chip customer base, with expansive geographic operations across the United States.

Total transaction consideration will be $600 million, with approximately $420 million in cash (including the repayment of Henkels' debt) plus approximately 2 million shares of MasTec common stock, subject to customary purchase price adjustments. Cash will be provided by MasTec's cash on hand as well as borrowing under its existing unsecured credit facility.

The transaction supports MasTec's long-term strategy to expand in the fast-growing electric utility services market with incremental recurring master service agreement revenue. It is expected that significant revenue and operating margin opportunities will materialize from this combination.

The transaction has been unanimously approved by the Board of Directors of both MasTec and Henkels, as well as Henkels' shareholders, and is expected to close by year end 2021, subject to receiving required Hart-Scott-Rodino approvals and the satisfaction of other customary closing conditions.