MasTec Inc., a specialty contractor based in Coral Gables, Fla., has revised the terms of its proposed acquisition of Fargo, N.D.-based Wanzek Construction Inc. Under the revised terms, MasTec will pay $50 million in cash, 7.5 million shares of MasTec common stock and $55 million in the form of convertible note, and assume $15 million of Wanzek's debt.
MasTec will also pay a two-year earnout equal to 50% of Wanzek's earnings before interest, taxes, depreciation and amortization in excess of $40 million per year. Under the original terms, MasTec had agreed to pay $200 million in cash and would have assumed $15 million of Wanzek's debt.
Wanzek has experienced significant growth in the past several years and had revenue of $192 million in 2007. The company anticipates 2008 annual revenue of approximately $400 million.
‘This transaction positions MasTec as a major player in numerous markets that are expected to grow dramatically as the new administration focuses on alternative energy and infrastructure investments to stimulate the economy and create up to 2.5 million new jobs,’ says Jose Mas, MasTec's president and CEO.
MasTec is also reaffirming its recently issued revenue and earnings guidance for 2008 and 2009. The company expects revenue to be between $1.325 billion and $1.345 billion, with earnings of $0.93 to $0.96 per diluted share.
SOURCE: MasTec Inc.