Quanta Services Acquires Price Gregory Services, Incorporated
02 Oktober 2009 - 12:00PM
PR Newswire (US)
Earl C. 'Duke' Austin, Jr. Appointed President of Quanta's New
Natural Gas and Pipeline Division HOUSTON, Oct. 2
/PRNewswire-FirstCall/ -- Quanta Services, Inc. (NYSE: PWR) today
announced the closing on Oct. 1, 2009 of the acquisition of Price
Gregory Services, Incorporated, a leading transmission pipeline
infrastructure service provider. In connection with the
acquisition, Quanta issued approximately 10.9 million shares of
Quanta common stock and paid approximately $96 million in cash to
the stockholders of Price Gregory Services. Building on Quanta's
leadership role in the electric power transmission industry, the
acquisition strongly positions Quanta as a leader in the North
American energy transmission infrastructure market and will enable
the company to take advantage of the positive long-term outlook for
the natural gas and transmission pipeline industry. In conjunction
with the acquisition, Quanta has formed a new division called the
Natural Gas and Pipeline Division and appointed Earl C. "Duke"
Austin, Jr. president and Paul M. Daily executive vice president of
this new division. Price Gregory Services will become part of this
new division, and J. Thomas White will serve as president of Price
Gregory Services with responsibility for its transmission pipeline
operations and facility services. Historically, Quanta's revenues
from natural gas operations were reported through the electric
power and natural gas division. "This strategic, financially
compelling acquisition significantly expands the scale and scope of
Quanta's existing natural gas infrastructure operations to better
meet the long-term infrastructure requirements of the natural gas
industry," said John R. Colson, chairman and CEO of Quanta
Services. "Under the leadership and direction of Duke, Paul and
Tom, we believe this division is strongly positioned to benefit
from the substantial growth projected over the next decade as
domestic natural gas plays a larger role in meeting our country's
energy independence and clean energy goals. "The acquisition of
Price Gregory and promotion of these leaders support our philosophy
to deliver value to our stockholders, quality services to our
customers and growth opportunities for our employees. We welcome
the Price Gregory team to our family of operating units." Austin
brings more than two decades of industry experience to this newly
created position. Most recently, he served as president of North
Houston Pole Line (NHPL), a Quanta Services company and one of the
largest infrastructure contractors in the Southwest. Austin has
been instrumental in the strategic growth of NHPL. Austin also
serves on the Board of the Southwest Line Chapter of the National
Electrical Contractors Association. Austin received a bachelor of
arts in business management with an emphasis in accounting from Sam
Houston State University. In addition to his new position, Daily
will continue as president of InfraSource Underground Services,
LLC, a Quanta Services company. Daily brings more than 30 years
experience in the management of domestic and international
underground construction projects, particularly in the natural gas
industry. In his various leadership positions, Daily's
responsibilities included the strategic oversight of engineering,
procurement and construction of electric power, oil, gas,
telecommunication and waste water infrastructure. For nine years,
Daily served as a commissioned officer in the U.S. Army. He
received a bachelor of science with an emphasis in mechanical
engineering and international economics from the United States
Military Academy. White previously served as president of Price
Gregory International and chief operating officer of Price Gregory
Services, Incorporated. He brings more than 40 years of pipeline
experience to this position. Throughout his career, he has been
responsible for the design, construction and testing of thousands
of miles of pipelines both in the U.S. and in the Middle East. In
addition to guiding all Price Gregory operations, White has served
the Pipeline Contractors Association as president and a member of
the board of directors, nominating committee and industry
advancement fund, among other positions. He is a registered
Professional Engineer and received a bachelor of science in civil
engineering from Mississippi State University. About Quanta
Services Quanta Services is a leading specialized contracting
services company, delivering infrastructure network solutions for
the electric power, natural gas, telecommunications and cable
television industries. The company's comprehensive services include
designing, installing, repairing and maintaining network
infrastructure nationwide. Additionally, Quanta licenses
point-to-point fiber optic telecommunications infrastructure in
select markets and offers related design, procurement, construction
and maintenance services. With operations throughout North America,
Quanta has the manpower, resources and expertise to complete
projects that are local, regional, national or international in
scope. Forward-Looking Statements Statements about Quanta's and
Price Gregory's outlook and all other statements in this release
other than historical facts are forward-looking statements intended
to qualify for the "safe harbor" from liability established by the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of
uncertainties and factors, many of which are outside Quanta's and
Price Gregory's control, which could cause actual results to differ
materially from such statements. Forward-looking information
includes, but is not limited to, statements regarding the new
combined company and opportunities in the pipeline industry. There
are a number of risks and uncertainties that could cause results to
differ materially from those indicated by such forward-looking
statements, including the failure of the natural gas industry to
grow in the future and the timing of any such growth; the impact on
the pipeline construction industry from various factors, such as
the price of natural gas and oil, the demand for power generation
from natural gas, the discovery and development of natural gas and
oil resources and legislative developments affecting the energy
industry overall; the effect on the businesses of Quanta and Price
Gregory from the decline in economic and financial conditions; the
failure to effectively integrate the combined operations and
realize potential synergies such as cross-selling opportunities;
the potential adverse impact to the businesses of the companies as
a result of uncertainty surrounding the transaction, including the
inability to retain key personnel; future regulatory or legislative
actions that could adversely affect the companies; the ability to
effectively compete for new projects and market share; and the
potential adverse effect of other economic, business, and/or
competitive factors on the combined companies or their respective
businesses. These forward-looking statements are also affected by
the risk factors, forward-looking statements and challenges and
uncertainties described in Quanta's Annual Report on Form 10-K for
the fiscal year ended December 31, 2008, its Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009
and its other filings with the Securities and Exchange Commission,
which are available free of charge on the SEC's website at
http://www.sec.gov/ and through Quanta's website at
http://www.quantaservices.com/. Quanta expressly disclaims any
intention or obligation to revise or update any forward-looking
statements whether as a result of new information, future events,
or otherwise. Quanta Contacts: Investor Contacts: James Haddox, CFO
Ken Dennard: 713-529-6600 Reba Reid Kip Rupp: 404-872-6764
713-629-7600 DRG&E DATASOURCE: Quanta Services, Inc. CONTACT:
James Haddox, CFO, or Reba Reid, both of Quanta Services, Inc.,
+1-713-629-7600; or Investors, Ken Dennard, +1-713-529-6600, or Kip
Rupp, +1-404-872-6764, both of DRG&E, for Quanta Services, Inc.
Web Site: http://www.quantaservices.com/
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