Yahoo Finance MasTec (MTZ) Buys IEA, Expands Renewable Energy Business
MasTec, Inc. MTZ has completed the earlier proposed deal to acquire Infrastructure and Energy Alternatives, Inc. (IEA) in a cash-and-stock transaction.
Per the deal, IEA stockholders will get $10.50 per share in cash and 0.0483 of a MasTec share.
Buyout Synergies
IEA is a leading renewable energy and infrastructure solutions services provider. It has expertise in engineering, procurement, construction and other related services and has a diverse blue-chip customer base. It has completed more than 260 utility-scale wind and solar projects across North America and executed a range of complex public and private infrastructure construction projects.
The IEA buyout expands MasTec’s service capabilities, scale and expertise, providing critical infrastructure to support the nation's energy transition to secure and sustainable renewable sources.
Pertaining to the transaction, Jose Mas, MasTec's chief executive officer, said, “Combining IEA's renewable energy business with MasTec's electric transmission and substation capabilities gives customers a one-stop solution in the expanding renewable energy markets. Additionally, IEA's Heavy Civil, Rail and Environmental Remediation services expand MasTec's service offerings in these additional growth markets."
MTZ continues to expect revenues of approximately $9.2 billion for 2022, depicting an increase from $7.95 billion in 2021. Considering higher costs during the second half of 2022, adjusted EBITDA is expected to be $750 million for 2022, down from $931.3 million reported in 2021. Adjusted earnings are anticipated to be $3.09 per share, lower than the $5.58 per share reported in 2021.
Price Performance
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Shares of MasTec have declined 8.6% in the past three months compared with the Zacks Building Products - Heavy Construction industry’s 1.4% fall. Nonetheless, the company has been making the most of the country’s diligent focus on carbon neutrality. Furthermore, MTZ’s substantial presence in the telecommunications market and recent expansion into heavy infrastructure will prove conducive to its growth profile.
Zacks Rank
MasTec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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