Quanta Services to acquire pipeline service company Price Gregory

HOUSTON - Quanta Services, Inc., on Sept. 3 announced that it has agreed to acquire privately held Price Gregory Services, Inc., a leading natural gas and oil
transmission pipeline infrastructure service provider in North America, in a
cash and stock transaction valued at approximately $350 million.
Under the terms of the agreement, Quanta will issue approximately 11.1 million shares of Quanta common stock, valued at $250 million, and will pay approximately $100 million in cash, subject to adjustment, to the stockholders of Price Gregory.
Price Gregory is the leading energy infrastructure services provider of its
kind, specializing in the construction of large-diameter transmission
pipelines.
The acquisition of Price Gregory strongly positions Quanta as a leader in the North American energy transmission infrastructure market and will enable the company to take advantage of the positive long-term outlook for the natural gas industry.
"The acquisition of Price Gregory is a strategic move that will significantly
expand the scale and scope of Quanta's existing natural gas operations. We are
confident that the additional resources, expertise and client relationships
that Price Gregory brings will support our efforts to capture attractive
opportunities in the natural gas pipeline infrastructure market, which is
projected to grow significantly in the next decade and beyond," said John R.
Colson, chairman and chief executive officer of Quanta.
Prior to the global economic downturn, Price Gregory achieved revenues of more
than $1.41 billion and earnings before interest, taxes, depreciation and
amortization (EBITDA, a non-GAAP measure) of $258 million for the year ended
Dec. 31, 2008. Price Gregory is expected to achieve revenues between $1.1
billion and $1.2 billion and EBITDA between $170 million and $190 million for
the year ended Dec. 31, 2009, and revenues between $700 million and $900
million in 2010.