MasTec in deal to buy Precision Pipeline for $150M, contingent on financing
Associated Press
11/03/09 7:50 PM EST
CORAL GABLES, FLA. — MasTec Inc. said on Tuesday it will buy Precision Pipeline LLC for $150 million.
MasTec, a utility and communications infrastructure contractor, said the deal is contingent on getting financing that it finds acceptable, and there is no break-up fee if such financing is not available.
Precision Pipeline of Eau Claire, Wis., builds and maintains large pipelines.
MasTec said Precision expects almost $300 million in revenue in 2009 and earnings before interest, taxes, depreciation, and amortization of about $60 million. That would be down from 2008 revenue of $507 million and adjusted earnings of $93 million. MasTec said the earnings drop is because the recession has hurt the natural gas and petroleum pipeline construction market.
MasTec said it expects the acquisition to add at least 8 cents per share to 2010 profits, not counting some accounting items.
MasTec shares fell 56 cents, or 4.5 percent, to $11.80 in after-hours trading. They finished the regular session with a 45-cent gain at $12.36.
