MasTec, Inc. (NYSE: MTZ) has announced that it has acquired Fabcor TargetCo, Ltd., and its subsidiaries, a Canadian pipeline and facility construction services company with offices in Grand Prairie, Alberta and Dawson Creek, British Columbia, Canada.
Fabcor’s pipeline and facility construction services to the oil and gas industry include: new pipeline construction; pipeline modification and replacement services; well-site and compressor station construction services; and gas plant modification and plant commissioning support services.
MasTec acquired all of the issued and outstanding shares of Fabcor for approximately $21.1 million in cash, the assumption of $8.8 million in debt, which was subsequently paid off, plus a five-year contingent earnout. Fabcor had a strong balance sheet at closing, with $26.3 million in tangible net worth, $15 million of which was related to pipeline construction equipment. Fabcor has worked for most major oil and gas companies in
MasTec anticipates significant opportunities for energy infrastructure work in
MasTec CEO Jose Mas commented, “We are very excited about the Fabcor acquisition. Its strong management team and dedicated workforce will provide MasTec with access to the dynamic Canadian energy markets, which we believe will show significant profitable growth in coming years.”
Mas continued, “Our acquisition program is now focused on smaller, strategic companies that can enhance our current geographic or client reach. Fabcor fits this profile as it provides us with an immediate presence in the Canadian market, allowing us to serve new as well as existing MasTec customers. We believe that Fabcor is the right fit for our business model, as it will create opportunities and expose MasTec to a very large infrastructure market adjacent to the markets we currently serve.”
MasTec, Inc. is a leading infrastructure construction company operating mainly throughout