Sep 17 | 2021
US$2.7 billion acquisition of Blattner Energy
Infrastructure firm Quanta Services has announced plans to acquire EPC specialist Blattner Energy for approximately US$2.7 billion, as it predicts accelerating demand for breakbulk activity from the North American renewable energy market.
Quanta aims to build on Blattner’s position as a leading EPC provider in the renewable energy space in the US to create a pure-play renewable energy infrastructure solutions platform, should the deal receive approval from regulators.
"We believe what Quanta is to the electric power solutions industry, Blattner is to the utility-scale renewable energy solutions industry," Duke Austin, CEO of Quanta, commented. "We are excited to announce our intention to acquire Blattner and we look forward to welcoming their employees to the Quanta family of companies."
Significant evolution
In operation for over a hundred years, Blattner today provides front-end engineering, procurement, project management and construction services for renewable energy developers in wind, solar and energy storage projects. The firm has completed or been awarded more than 300 wind projects, with more than 49 gigawatts of installed generating capacity.
Scott Blattner, President of Blattner said: "Our industry is on the cusp of significant evolution and this is an opportunity to add the additional scale and resources needed for our organization to continue leading and delivering certainty to our renewable energy customers.”
Blattner has posted double-digit organic revenue and profit growth in recent years as it has established its presence in the growing wind and solar sectors in the U.S. Full-year 2020 revenues were approximately U$2.4 billion, while adjusted EBITDA stood at US$291 million. The partners now hope to take advantage of the U.S. administration's plans for infrastructure investment, which include trillions of dollars in funding to support green development.
Accelerating growth drivers
Both firms expect the merger to significantly accelerate demand for breakbulk services as renewable energy development grows. Increased opportunities are predicted to arise from energy transition and carbon-neutrality initiatives; electricity load growth; new generation capacity; public policy; decline in levelized costs; and consumer and investor preferences.
For the full year 2022, Quanta estimates revenues for Blattner to be between US$2.5 billion and US$2.7 billion, with adjusted EBITDA of as much as US$290 million.
Headquartered in Houston, Texas, Quanta Services provides infrastructure services for electric power, pipeline, industrial and communications and employs a workforce of about 40,000.
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