The company will acquired Pacer Construction and its affiliated operating companies for about $126 million in cash and a five-year contingent earn-out. Pacer is "a leading contractor" in Western Canada according to MasTec, which focuses on infrastructure construction to support the oil and gas production/processing, mining, and transportation industries. The acquisition will help MasTec expand its presence in the Canadian oil sands.'
MasTec also announced that it amended to senior secured credit facility, increasing the aggregate borrowing commitments to $1 billion from $750 million. The changes also include the ability to borrow in Mexican Pesos in addition to Canadian Dollars.
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TheStreet Ratings team rates MASTEC INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MASTEC INC (MTZ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."