The acquisition is expected to significantly boost Quanta’s exposure to the utility-scale renewable energy wind, solar, and energy storage markets
Renewable energy contractor Blattner agrees to be acquired by Quanta Services. (Credit: adege from Pixabay)
Quanta Services has agreed to acquire Blattner, a US-based utility-scale renewable energy infrastructure solutions provider, for a sum of around $2.7bn.
The consideration is made up of nearly $2.36bn in cash and issuance of $340m worth shares of Quanta Services, which is a Houston-based specialised contracting services company.
Established in 1907, Blattner is based in Avon, Minnesota.
The company offers front-end engineering, procurement, project management, and construction services to renewable energy projects across North America.
It is the parent company of renewable energy contractor Blattner Energy and EPC solar energy contractor D.H. Blattner & Sons.
Blattner is said to have completed or been awarded over 300 wind farms with a combined installed capacity of over 49GW. The company has also worked on more than 90 solar power projects with a combined installed capacity of over 12GW, and 17 energy storage projects.
In 2020, the company earned revenues of around $2.4bn.
Blattner president Scott Blattner said: “Blattner was looking for a strategic partner with the resources and capabilities that will provide us the opportunity to strengthen our market position, take advantage of next-generation opportunities emerging in the renewable energy market and continue to contribute to the long-term success of our employees and customers.
“To that end, we believe Quanta is the ideal partner for Blattner.”
Blattner’s acquisition is expected to considerably boost the exposure of Quanta Services to the utility-scale renewable energy wind, solar, and energy storage markets. The company will serve as Quanta Services’ platform operating unit.
Quanta Services offers infrastructure solutions for the utility, pipeline and energy, and communications industries. It has operations across the US, Canada, Australia and certain other international markets.
Quanta Services president and CEO Duke Austin said: “We believe what Quanta is to the electric power solutions industry, Blattner is to the utility-scale renewable energy solutions industry. Together, we will be focused on what we believe are the most attractive areas of the electric infrastructure complex.
“Blattner will bring an exceptional management team that we believe will enhance our ability to collaborate with our customers to shape North America’s energy transition to a carbon-neutral economy.
“Blattner has a strong and visible project backlog, and we believe their financial contribution will be accretive to Quanta’s growth, margins, cash flow conversion and earnings per share.”
The deal, which is subject to regulatory approvals and other customary closing conditions, is anticipated to close in the fourth quarter of 2021.