MasTec to Acquire Precision Pipeline
Coral Gables, Fla.-based specialty contractor MasTec announced that it has signed a definitive agreement to acquire Precision Pipeline of Eau Claire, Wis., a natural gas, crude oil and refined products transmission pipeline infrastructure services provider, for approximately $150 million. According to MasTec, the deal is subject to certain purchase price adjustments and an earnout. The transaction is contingent on financing availability on terms and conditions acceptable to MasTec.
Precision specializes in the construction and maintenance of large diameter pipelines. According to MasTec, for 2009, Precision estimates revenue of slightly less than $300 million.
In a press statement announcing the acquisition, Bob Campbell, MasTec's executive vice president of finance and chief financial officer, noted: "Our purchase agreement includes a requirement to obtain at least $75 million in financing and we are currently reviewing our financing options. Our current capital structure, liquidity and cash flows are all in excellent shape today which enables us to do this very attractive acquisition. MasTec's liquidity as of September 30, 2009, was $183 million, with liquidity defined as cash plus availability on its senior credit facility. Cash flow from operations for September year-to-date 2009 was $86 million, which was double the cash flow for the same period last year.”