MasTec to Acquire Infrastructure and Energy Alternatives (IEA)

MasTec and Infrastructure and Energy Alternatives (IEA) have announced signing an agreement under which MasTec will acquire all of the outstanding shares of IEA in a cash-and-stock transaction. Each IEA share is valued at $14.00.

The official statement of MasTec said that the transaction has been unanimously approved by the Boards of Directors of both MasTec and IEA. This will remain subject to customary closing conditions, including IEA stockholders and Hart-Scott-Rodino approvals. The transaction is expected to close late in the fourth quarter of 2022.

IEA is a services provider in renewable energy and infrastructure solutions, with capabilities spanning engineering, procurement, construction and related services. MasTec statement reads that IEA has completed more than 260 utility-scale wind and solar projects across North America.

Jose Mas, Chief Executive Officer, MasTec, said, “We are proud to expand our service capabilities, scale and expertise providing critical infrastructure to support the nation’s energy transition to secure and sustainable renewable sources. We are excited to welcome JP, the IEA management team and almost 6,000 IEA team members to the MasTec family.”

Mas added, “We believe that the addition of IEA’s union based clean energy power generation services, coupled with MasTec and IEA’s combined non-union craft labor capacity, will provide increased scale and capacity needed to meet expected growing customer demand for renewable power generation over the next decade.”

The CEO said that MasTec’s existing electrical transmission and distribution service capabilities, coupled with expanded renewable power generation services from the IEA acquisition, will provide a compelling and complete suite of services to support customer’s needs for both power generation and power grid system infrastructure required to transition to renewable energy and reduce carbon emissions.

JP Roehm, President and CEO, IEA, commented, “The combination with MasTec will create new opportunities for IEA’s employees and our customer base. Our joint resources and capabilities will advance our ability to serve our customers in the renewable energy, power delivery and infrastructure markets.”

Roehm said that IEA stockholders will benefit from MasTec and IEA’s combined operations and scale, and this belief is reflected in their agreement to receive 25% of the transaction proceeds in MasTec common stock.

Transaction Information

MasTec has entered into agreements with various IEA stockholders, which collectively own approximately 35 per cent of IEA’s outstanding stock, to vote their shares of IEA common stock in favor of the transaction.

Based on estimated IEA net debt levels at closing, the total transaction consideration will be approximately $1.1 billion. MasTec expects to issue approximately 2.8 million MasTec shares in the transaction.

MasTec said that it has obtained committed bridge financing from Bank of America and J.P. Morgan to complete the transaction.