MasTec, Inc. has acquired Big Country Energy Services Inc., and its affiliated operating companies (collectively, Big Country), a North American oil and gas pipeline and facility construction services company headquartered in Calgary. The Company also has construction offices in Alberta, British Columbia and Saskatchewan, as well as in Wyoming and North Dakota. Big Country's services include: oil, natural gas and natural gas liquids gathering systems and pipeline construction; pipeline modification and replacement services; compressor and pumping station construction; and other related services supporting the oil and gas production, processing and transportation industries.
MasTec acquired all of the issued and outstanding equity interests of Big Country for approximately $103 million in cash, the assumption of approximately $24 million in debt, plus a 5-year contingent earn-out. Big Country had a strong balance sheet at closing, with approximately $53 million in tangible net worth. Additionally, Big Country has a strong customer base and has worked for a variety of significant energy and pipeline companies, including Shell, Canadian Natural Resources Ltd, Enbridge, Suncor, Encana, Husky, ConocoPhillips and Cenovus Energy.
With approximately 1,200 employees and 600 pieces of construction equipment, Big Country significantly expands MasTec's ability to take advantage of the rapidly expanding opportunities anticipated for energy infrastructure work in North America in the coming years. Big Country also has an excellent safety record.
Jose Mas, MasTec's Chief Executive Officer, commented, "We are very excited about the Big Country acquisition. This acquisition is consistent with our recent public comments regarding our expansion plans in Canada's dynamic energy sector."
Mr. Mas continued, "Big Country has an excellent management team and has consistently been named as one of Canada's 50 Best Managed Companies in the annual national award sponsored by Deloitte, CIBC Banking, the National Post and Queens School of Business. Big Country has received Platinum status in the award program for seven consecutive years. I am excited that Big Country is now an important part of MasTec's plan for future growth."
Additional details will be provided on the second quarter earnings conference call, tentatively scheduled for 9:00am August 2nd.