MasTec Inc is buying Superior Group for US$1.65 billion (A$2.38 billion) in cash and stock to expand its capabilities in the fast-growing market for data centre and other mission-critical infrastructure.
The United States-based infrastructure engineering and construction company said the price consisted of $1.175 billion in cash and $475 million in stock, with an additional earnout tied to Superior's financial performance over the three years after the deal closes.
MasTec said the acquisition would strengthen its position in the buildout of artificial intelligence (AI)-driven data centres by adding electrical systems expertise to its power generation, transmission, substations and communications infrastructure capabilities.
Chief Executive Officer Jose Mas said Superior expanded MasTec’s ability to serve the ongoing buildout of data centre, power and mission-critical infrastructure, which he described as one of the most compelling infrastructure opportunities in the market.
“Together, we will be able to provide customers with a broader suite of self-perform capabilities spanning power generation, transmission, substations, civil infrastructure, communications and inside-the-fence electrical systems, enhancing our ability to support customers across a wider range of mission-critical infrastructure projects,” he said in a news release.
“We believe the combination of Superior's leadership, skilled workforce and electrical expertise with MasTec's national scale, customer relationships and diversified capabilities will create significant value for our customers, employees and shareholders."
Superior Chairman and CEO Bryan Stewart said Superior’s deep experience in building critical infrastructure and MasTec’s leadership in power, energy and communications positioned them to lead the buildout of new projects throughout the U.S.
“Together, we’ll capitalise on this once-in-a-generation opportunity to build the foundation of America’s digital future,” he said
MasTec (NYSE: MTZ) closed $21.54 (5.66%) lower at $358.85, capitalising the company at $28.36 billion, before rising $5.82 (1.62%) in after-hours trading to $364.67 on Tuesday (Wednesday).
