Quanta Services Announces Definitive Agreement to Sell Its
Telecommunications Subsidiaries to Dycom Industries for $275
Million
HOUSTON, Nov. 19, 2012 /PRNewswire/ -- Quanta Services,
Inc. (NYSE: PWR) today announced that it has entered into a
definitive agreement to sell its telecommunications subsidiaries to
Dycom Industries, Inc. (NYSE: DY) for approximately $275 million in cash, subject to final
adjustments. The subsidiaries included in the transaction comprise
substantially all of Quanta's domestic telecommunications
infrastructure services operations. Quanta intends to use the
proceeds of the transaction to support its ongoing strategic growth
initiatives primarily associated with electric power and pipeline
infrastructure and for general corporate purposes. The required
waiting period under the Hart-Scott Rodino Act has expired, and
subject to customary conditions, the transaction is expected to
close by December 31, 2012. Stephens
Inc. served as financial advisor to Quanta Services in the
transaction.
(Logo:
http://photos.prnewswire.com/prnh/20110810/MM50805LOGO)
"Significant electric power infrastructure investments are
anticipated in North America and
worldwide over the next several years, and the development of North
American energy resources from conventional and unconventional
formations will require major infrastructure expansion. This
transaction enables Quanta to further strategically focus on energy
infrastructure markets, which we believe will undergo substantial
development in the coming years," said Jim O'Neil, president and
chief executive officer of Quanta Services. "Dycom Industries is a
leader in the telecommunications infrastructure industry, and we
are pleased that our telecommunications infrastructure services
employees will be part of a high-quality organization once this
transaction is completed. Further, I want to recognize Ken Trawick, who has been with Quanta since 1999
and has served as the president of our telecommunications
operations since 2004, for his leadership and dedication to Quanta.
We wish him well as he works with Dycom to ensure a smooth
transition of operations. I would also like to thank all of our
telecommunications employees for their significant contributions to
our organization over the years."
The subsidiaries in the transaction account for substantially
all of Quanta's domestic telecommunications infrastructure services
operations. The trailing twelve month revenues through September 30, 2012, associated with these
subsidiaries were approximately $535
million, which includes approximately $34 million for services performed within
Quanta's Fiber Optic Licensing segment and approximately
$39 million of revenues from other
Quanta segments. After closing the transaction, Quanta plans to
disclose the estimated financial effects of the transaction on this
year's fourth quarter and full year 2012 results.
ABOUT QUANTA SERVICES
Quanta Services is a leading specialized contracting services
company, delivering infrastructure solutions for the electric power
and natural gas and pipeline industries in North American and in
certain international markets. Quanta's comprehensive services
include designing, installing, repairing and maintaining network
infrastructure. Additionally, Quanta licenses point-to-point fiber
optic telecommunications infrastructure in certain markets and
offers related design, procurement, construction and maintenance
services. With operations throughout North America and in certain international
markets, Quanta has the manpower, resources and expertise to
complete projects that are local, regional, national or
international in scope.
Forward-Looking Statements
This press release (and oral statements regarding the subject
matter of this release) contains forward-looking statements
intended to qualify for the "safe harbor" from liability
established by the Private Securities Litigation Reform Act of
1995. Forward-looking statements include, but are not limited to,
statements regarding the anticipated timing of and the completion
of the sale of Quanta's telecommunications subsidiaries (the
"Transaction"); the impact of the Transaction on projected
revenues, earnings per share, margins, capital expenditures and
other projections of financial and operating results; expectations
regarding our business outlook, growth or opportunities in
particular markets; Quanta's strategies and plans; statements
reflecting expectations, intentions, assumptions or beliefs about
future events, and other statements that do not relate strictly to
historical or current facts. Although Quanta's management believes
that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations
will prove to be correct. These statements can be affected by
inaccurate assumptions and by a variety of risks and uncertainties
that are difficult to predict or beyond our control, including,
among others, the possibility that one or more closing conditions
for the Transaction may not be satisfied or waived, the effects of
disruption from the Transaction; variations in operating results;
the effects of industry, economic or political conditions outside
of the control of Quanta; adverse economic and financial
conditions, including weakness in the capital markets; trends and
growth opportunities in relevant markets; and other risks and
uncertainties detailed in Quanta's Annual Report on Form 10-K for
the year ended December 31, 2011, Quanta's Quarterly Reports
on Form 10-Q for the quarters ended March
31, 2012, June 30, 2012 and
September 30, 2012, and any other
documents that Quanta files with the Securities and Exchange
Commission (SEC). Should one or more of these risks materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those expressed or implied in any
forward-looking statements. Investors are cautioned not to place
undue reliance on these forward-looking statements, which are
current only as of this date. Quanta does not undertake and
expressly disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. For a discussion of these risks,
uncertainties and assumptions, investors are urged to refer to
Quanta's documents filed with the SEC that are available through
the company's website at www.quantaservices.com or through the
SEC's Electronic Data Gathering and Analysis Retrieval System
(EDGAR) at www.sec.gov.
Contacts:
|
Derrick
Jensen, CFO
|
|
Investors
- Kip Rupp, CFA
|
|
Media -
Reba Reid
|
|
Quanta
Services, Inc.
|
|
713-629-7600
|
SOURCE Quanta Services, Inc.