Mastec acquires IEA, revises H2 guidance

Contractor MasTec has agreed to acquire renewable energy and infrastructure services provider Infrastructure and Energy Alternatives in a cash-and-stock transaction valued at $14.0 per share.

MasTec said the acquisition, which it expects to close late in Q4, "significantly expands" the group's clean energy and infrastructure segment and would be accretive to the group's 2023 earnings per share, before synergy benefits, with potential revenues and operational synergies expected in 2024 and beyond.

The Floridian outfit will pay $10.50 per IEA share in cash, as well as issue shareholders with 0.0483 of a MasTec share for every IEA share held. Based on MasTec's 22 July closing price, this represents a 34% premium to IEA's closing stock price on the same day.

On a different note, MasTec updated its full-year guidance on Monday, primarily due to an expected increase in costs during the second half of the year, with company now expecting revenues to come to approximately $5.0bn, with second-half GAAP net income forecast to be roughly $114.0m and adjusted underlying earnings seen at around $471.0m.

Full-year revenues were still predicted to be in the vicinity of $9.2bn, with full-year GAAP net income and diluted earnings per share seen at $95.0m and $1.24 per share, respectively. Full-year adjusted EBITDA was pegged to be $750.0m and adjusted diluted earnings per share were projected to come to $3.09.

As of 1330 BST, Mastec shares were down 4.85% in pre-market trading at $69.0 each.

Reporting by Iain Gilbert at Sharecast.com