Utility infrastructure contractor Quanta Services has acquired transmission pipeline infrastructure services provider Price Gregory Services in a cash-plus-shares deal.
Houston-based Quanta said in a statement it has issued around 10.9 million shares of common stock in addition to paying $96 million in cash to Price Gregory’s shareholders as part of the transaction.
The deal is an attempt by Quanta to move into the North American energy transmission infrastructure market and to take advantage of what Quanta described as the “positive long-term outlook” for the natural gas and transmission pipeline industry.
As a result of the deal, Quanta has created a new natural gas and pipeline division which will be headed by Earl C. Austin, Jr. as president and Paul M. Daily as executive vice president. Newly–acquired Price Gregory, also headquartered in Houston, will become part of this new division.
Price Gregory Services provides pipeline construction and related maintenance services. It is active in the continental United States and Canada.