Quanta to buy Canadian utility contractor for $219 mln

(BestGrowthStock) – U.S. utility contractor Quanta Services Inc (PWR.N: ) said it acquired Canadian peer Valard Construction in a cash and stock deal valued at $219 million, to expand its Canadian service offering.

Quanta designs, installs, repairs, and maintains network infrastructure including electric, gas, broadband cable, and telephone and data lines.

In connection with the acquisition, the stockholders of Valard will receive about $118.9 million in cash and an aggregate of about 4.5 million in common and exchangeable shares, Quanta said.

“Canada, as the world’s second largest exporter of electricity, presents significant emerging and long-term opportunities to expand and upgrade the electric transmission infrastructure,” Quanta’s Chief Executive John Colson said.

Valard’s revenue is expected to be between $225-$250 million in 2011 and the transaction, which will close Monday, will be accretive to earnings in 2011 and beyond, Quanta said.

Valard is one of Canada’s largest electric power line contractors, building high-voltage transmission lines, distribution infrastructure, providing engineering services for substations and installing fiber optic systems.

Quanta’s shares closed at $20.20 Friday on the New York Stock Exchange. They have gained 16 percent of their value in less than two months.

(Reporting by Divya Sharma in Bangalore; Editing by Vyas Mohan)

Quanta to buy Canadian utility contractor for $219 mln