About This Deal

MasTec acquired Wanzek Construction, Inc. for $50 million cash, 7.5 million MasTec shares, a $55 million 8% seller convertible note, ~$15 million of assumed debt and a two-year EBITDA earn-out, a transaction completed in December 2008, structured as cash, stock and seller note (combination).

Wanzek Construction, Inc. operates in Oil and Gas / Power Generation and Industrial, is based in North Dakota, United States, had revenue of about Wanzek anticipated ~$400M revenue and ~$45M EBITDA for 2008. North Dakota construction company focused on wind-farm, heavy-civil and industrial and infrastructure work, with operations spanning natural-gas processing plants, compressor stations, electrical power-generating plants, industrial facilities, roads and bridges. MasTec completed the acquisition on December 16, 2008 under a stock purchase agreement dated October 4, 2008, paying with cash, 7.5 million shares, a $55M convertible note and assumed debt plus an earn-out.

Extended MasTec's presence in the growing alternative-energy and infrastructure construction markets and advanced its diversification strategy.

Diversified, high-quality customer base and skilled workforce in wind and heavy-civil construction. Wind/heavy-civil construction operations

Deal Terms

Acquirer
MasTec
Target
Wanzek Construction, Inc.
Value
$50 million cash, 7.5 million MasTec shares, a $55 million 8% seller convertible note, ~$15 million of assumed debt and a two-year EBITDA earn-out
Date
December 2008
Type
Full acquisition
Status
Ready

Transaction Details

Target HQ
North Dakota, United States
Segment
Oil and Gas / Power Generation and Industrial
Structure
Cash, stock and seller note (combination)
Target revenue
Wanzek anticipated ~$400M revenue and ~$45M EBITDA for 2008
Announced
October 4, 2008
Closed
December 16, 2008

In Their Words

Wanzek is an exceptional company and we are excited to close the transaction and begin joint operations with its highly-skilled management team and workforce. Its diversified and high-quality customer base is a great addition to the MasTec portfolio.Jose Mas, President and CEO, MasTec

Advisors

Advisory firms were not disclosed for this transaction.

Related Deals & Entities

Sources: Press release ↗ · SEC filing ↗

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