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MasTec to Acquire Precision Pipeline LLC
MasTec has signed a $150 million deal to buy Precision Pipeline LLC, a Wisconsin company that provides infrastructure for natural gas and petroleum pipelines.
The company also plans a $100 million private offering of senior convertible notes to help pay for the acquisition.
Precision’s experience in the interstate pipeline industry, particularly in the construction and maintenance of large diameter pipelines, will complement MasTec’s existing energy infrastructure services, Miami-based MasTec said.
Precision generated $507 million of revenue and $93 million in EBITDA earnings in 2008, but soft market conditions are expected to drop that to revenue of $300 million and EBITDA of about $60 million this year.
The transaction is subject to financing and consent agreements. MasTec expects to close the transaction before the end of the fourth quarter 2009.