Quanta Services acquires services company Stronghold
HOUSTON — Quanta Services, Inc. announced that it has completed the acquisition of Stronghold, Ltd. and Stronghold Specialty, Ltd., a specialized services company that provides high pressure and critical path solutions to the downstream and midstream energy markets.
Headquartered in La Porte, Texas, Stronghold has a strong presence in the Gulf Coast refinery and petrochemical market and serves nearly all regions of the United States. Stronghold generated revenues of approximately $500 MM for the full year of 2016 and has a workforce averaging approximately 2,800 employees. Stronghold's operations will be reflected in Quanta's Oil and Gas Infrastructure services segment.
The transaction consideration consists of an upfront payment of approximately $450 MM, comprised of $360 MM of cash and 2.7 MM shares of Quanta Services common stock valued at approximately $90 MM, with a cash and stock earnout that could provide maximum additional consideration of $100 MM if cumulative 3-yr EBITDA targets are achieved.
Stronghold's existing management team will remain in place, with founder Joe Durham continuing in his leadership role as Chief Executive Officer of Stronghold. With a skilled, dedicated and high-quality workforce, Stronghold will serve as a platform operating unit of Quanta.
Harris Williams & Co. served as financial advisor and Baker Botts L.L.P. served as legal advisor to Quanta for the transaction.
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