MasTec Buys Utility Specialty Contractor

MasTec Inc., Coral Gables, FL, acquired INTREN, a utility specialty contractor primarily providing electrical distribution network services under various multi-year master service agreements to the nation's largest utilities, municipalities, and cooperatives.  INTREN is headquartered in Union, IL, and has approximately 2,000 employees providing services in 14 states across the United States.

According to the press release, MasTec acquired all the equity interests of INTREN for approximately $420 million in cash plus a contingent earnout through year-end 2021.  At closing, INTREN is expected to have approximately $100 million in tangible net worth. The acquisition will be funded from MasTec' s cash on hand and its existing senior secured credit facility and is subject to customary purchase price adjustments.

Founded in 1988 by a sole female founder, INTREN has exhibited significant growth over the past ten years with a +23% compounded annual revenue growth rate. For the trailing twelve-month period ended March 2021, INTREN generated approximately $550 million of revenue, with over 90% generated from its multiple master service agreements, at a double-digit EBITDA margin. MasTec anticipates that this transaction will be accretive to its earnings in 2021 and 2022 and will provide additional details on INTREN during the Company's upcoming first quarter earning conference call on May 7, 2021.

 Jose Mas, MasTec' s president and CEO said in the press release, "We are very excited to add INTREN to the MasTec family and substantially expand our reach in the electric utility distribution business.  We believe that changes in electrical distribution needs, led by grid modernizations and hardening, coupled with the transition towards increased electric vehicle usage, will have an enormous impact on the last mile distribution of electricity.  The acquisition of INTREN represents a major expansion of MasTec' s operations at the forefront of that high-growth market.

"I have followed INTREN's growth closely over the years. As the largest woman-owned utility specialty contractor in the country, I have always been impressed with the quality of INTREN's management and their entrepreneurial spirit. We anticipate continued revenue growth over the next few years as INTREN continues to support the expansion of the nation's critical distribution networks."

Sherina Maye Edwards, president and CEO of INTREN, said in the press release that the acquisition will help her company expand into new markets.

MasTec’s primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy and utility and other infrastructure, such as: wireless, wireline/fiber, and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; power generation; heavy civil, and industrial infrastructure.