Quanta Services To Buy Price Gregory For $350M

HOUSTON (AP) — In a move to boost its standing in the North American transmission market, Quanta Services Inc. said Thursday it will acquire Price Gregory Services Inc. for $350 million in cash and stock.

The utility infrastructure services provider will issue about 11.1 million shares of its common stock, which the company values at $250 million, and pay about $100 million in cash to Price Gregory stockholders. Privately held Price Gregory is a natural gas and oil transmission pipeline infrastructure service provider in North America.

"While demand for transmission pipeline construction has recently been impacted by the recession and low natural gas and oil prices, substantial growth is projected over the next decade as domestic natural gas plays a larger role in meeting this country's energy independence and clean energy goals," said Quanta CEO John Colson, noting that the purchase will boost earnings per share, raise revenue and fatten margins.

The company expects the deal to add between 13 cents and 21 cents per share to 2010 earnings before amortization expense. The acquisition is scheduled to close in the fourth quarter of 2009.

Shares of the company closed at $21.62 on Wednesday.