Quanta Services acquires Stronghold

Quanta Services has acquired Stronghold, a specialist services company that provides high pressure and critical path solutions to the downstream and midstream energy markets, for around $450m. Headquartered in La Porte, Texas, Stronghold has a strong presence in the Gulf Coast refinery and petrochemical market and serves nearly all regions of the United States.

President and Chief Executive Officer of Quanta Services, Duke Austin said: “We remain positive on our 2017 and multiyear outlook and believe Stronghold is a strategic acquisition that will allow us to capture a greater portion of the energy industry operating and capital spend. With positive industry dynamics, visible cross-selling opportunities and Quanta’s support, we believe there is a multiyear opportunity for Stronghold’s operations to achieve double digit growth. Stronghold’s recurring revenues, accretive operating income margin profile and strong free cash flow generation align well with our strategic imperatives for long-term profitable growth. Stronghold is led by a multigenerational, experienced and well respected management team and, importantly, has a world-class, industry leading safety record. We welcome all of Stronghold’s employees to the Quanta family.”

Chief Executive Officer of Stronghold, Joe Durham said: “Quanta is an ideal cultural and strategic fit for Stronghold, and we are excited to join the Quanta family. Both companies are committed to safety, our employees and our customers, which provide the foundation for success. Joining Quanta will provide significant resources to Stronghold as we look to build on our history of profitable growth and meet the growing needs of our customers in the years ahead.”

For more information visit www.quantaservices.com

27th July 2017