MasTec acquired Precision Pipeline, LLC for approximately $132 million in cash plus ~$34 million of assumed debt and a five-year earn-out, a transaction completed in November 2009, structured as cash plus earn-out.
Precision Pipeline, LLC operates in Oil and Gas, is based in United States (interstate pipeline markets), had revenue of about Precision generated $507M revenue and $93M EBITDA in 2008 ($303M/$37M in 2007); estimated slightly under $300M revenue for 2009. Large-diameter natural-gas, crude-oil and refined-products transmission pipeline construction and infrastructure services provider with a largely unionized workforce. MasTec completed the purchase of all membership interests on November 23, 2009, funding it alongside a concurrent $100M issuance of 4.25% senior convertible notes.
Extended MasTec into the interstate pipeline industry and, per management, made it one of the leading pipeline contractors nationwide, complementing its gathering-system, midstream and processing work.
Over $500M of backlog as of September 30, 2009 and a unionized workforce enabling large interstate pipeline projects. Oil and Gas segment (pipeline)
We are very pleased with the acquisition of Precision. Precision's strong management team and dedicated workforce will provide MasTec with additional capacity and exposure to the natural gas and petroleum pipeline markets.Jose Mas, President and CEO, MasTec
Advisory firms were not disclosed for this transaction.