EX-99.1
Published on October 7, 2009
Exhibit 99.1
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PRESS RELEASE |
FOR IMMEDIATE RELEASE
09-14
09-14
Quanta Contacts: | Investor Contacts: | |||
James Haddox, CFO | Ken Dennard: 713-529-6600 | |||
Reba Reid | Kip Rupp: 404-872-6764 | |||
713-629-7600 | DRG&E |
QUANTA SERVICES ACQUIRES PRICE GREGORY SERVICES, INCORPORATED
Earl C. Duke Austin, Jr. Appointed President of
Quantas New Natural Gas and Pipeline Division
Quantas New Natural Gas and Pipeline Division
HOUSTON Oct. 2, 2009 Quanta Services, Inc. (NYSE: PWR) today announced the closing on
Oct. 1, 2009 of the acquisition of Price Gregory Services, Incorporated, a leading transmission
pipeline infrastructure service provider. In connection with the acquisition, Quanta issued
approximately 10.9 million shares of Quanta common stock and paid approximately $96 million in cash
to the stockholders of Price Gregory Services.
Building on Quantas leadership role in the electric power transmission industry, the acquisition
strongly positions Quanta as a leader in the North American energy transmission infrastructure
market and will enable the company to take advantage of the positive long-term outlook for the
natural gas and transmission pipeline industry.
In conjunction with the acquisition, Quanta has formed a new division called the Natural Gas and
Pipeline Division and appointed Earl C. Duke Austin, Jr. president and Paul M. Daily executive
vice president of this new division. Price Gregory Services will become part of this new division,
and J. Thomas White will serve as president of Price Gregory Services with responsibility for its
transmission pipeline operations and facility services. Historically, Quantas revenues from
natural gas operations were reported through the electric power and natural gas division.
This strategic, financially compelling acquisition significantly expands the scale and scope of
Quantas existing natural gas infrastructure operations to better meet the long-term infrastructure
requirements of the natural gas industry, said John R. Colson, chairman and CEO of Quanta
Services. Under the leadership and direction of Duke, Paul and Tom, we believe this division is
strongly positioned to benefit from the substantial growth projected over the next decade as
domestic natural gas plays a larger role in meeting our countrys energy independence and clean
energy goals.
The acquisition of Price Gregory and promotion of these leaders support our philosophy to
deliver value to our stockholders, quality services to our customers and growth opportunities for
our employees. We welcome the Price Gregory team to our family of operating units.
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Austin brings more than two decades of industry experience to this newly created position. Most
recently, he served as president of North Houston Pole Line (NHPL), a Quanta Services company and
one of the largest infrastructure contractors in the Southwest. Austin has been instrumental in
the strategic growth of NHPL. Austin also serves on the Board of the Southwest Line Chapter of the
National Electrical Contractors Association. Austin received a bachelor of arts in business
management with an emphasis in accounting from Sam Houston State University.
In addition to his new position, Daily will continue as president of InfraSource Underground
Services, LLC, a Quanta Services company. Daily brings more than 30 years experience in the
management of domestic and international underground construction projects, particularly in the
natural gas industry. In his various leadership positions, Dailys responsibilities included the
strategic oversight of engineering, procurement and construction of electric power, oil, gas,
telecommunication and waste water infrastructure. For nine years, Daily served as a commissioned
officer in the U.S. Army. He received a bachelor of science with an emphasis in mechanical
engineering and international economics from the United States Military Academy.
White previously served as president of Price Gregory International and chief operating officer of
Price Gregory Services, Incorporated. He brings more than 40 years of pipeline experience to this
position. Throughout his career, he has been responsible for the design, construction and testing
of thousands of miles of pipelines both in the U.S. and in the Middle East. In addition to guiding
all Price Gregory operations, White has served the Pipeline Contractors Association as president
and a member of the board of directors, nominating committee and industry advancement fund, among
other positions. He is a registered Professional Engineer and received a bachelor of science in
civil engineering from Mississippi State University.
About Quanta Services
Quanta Services is a leading specialized contracting services company, delivering infrastructure
network solutions for the electric power, natural gas, telecommunications and cable television
industries. The companys comprehensive services include designing, installing, repairing and
maintaining network infrastructure nationwide. Additionally, Quanta licenses point-to-point fiber
optic telecommunications infrastructure in select markets and offers related design, procurement,
construction and maintenance services. With operations throughout North America, Quanta has the
manpower, resources and expertise to complete projects that are local, regional, national or
international in scope.
Forward-Looking Statements
Statements about Quantas and Price Gregorys outlook and all other statements in this release
other than historical facts are forward-looking statements intended to qualify for the safe
harbor from liability established by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements rely on a number of assumptions concerning future events and are subject
to a number of uncertainties and factors, many of which are outside Quantas and Price Gregorys
control, which could cause actual results to differ materially from such statements.
Forward-looking information includes, but is not limited to, statements regarding the new combined
company and opportunities in the pipeline industry. There are a number of risks and uncertainties
that could cause results to differ materially from those indicated by such forward-looking
statements, including the failure of the natural gas industry to grow in the future and the timing
of any such growth; the impact on the pipeline construction industry from various factors, such as
the price of natural gas and oil, the demand for power generation from natural gas, the discovery
and development of natural gas and oil resources and legislative developments affecting the energy
industry overall; the effect on the businesses of Quanta and Price Gregory from the decline in
economic and financial conditions; the failure to effectively integrate the combined operations and
realize potential synergies such as cross-selling opportunities; the potential adverse impact to
the businesses of the companies as a result of uncertainty surrounding the transaction, including
the inability to retain key personnel; future regulatory or legislative actions that could
adversely affect the companies; the ability to effectively compete for new projects and market
share; and the potential adverse effect of other economic, business, and/or competitive factors on
the combined companies or their respective businesses. These forward-looking statements are also
affected by the risk factors, forward-looking statements and challenges and uncertainties described
in Quantas Annual Report on Form 10-K for the fiscal year ended December 31, 2008, its Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009 and its other filings
with the Securities and Exchange Commission, which are available free of charge on the SECs
website at www.sec.gov and through Quantas website at www.quantaservices.com.
Quanta expressly disclaims any intention or obligation to revise or update any forward-looking
statements whether as a result of new information, future events, or otherwise.
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