For the remainder of 2017, the acquisition of Stronghold is expected to generate $6.0 million to $7.5 million of net income attributable to common stock and to be accretive to Quanta's GAAP diluted earnings per share attributable to common stock by $0.02 to $0.03 and to non-GAAP adjusted diluted earnings per share attributable to common stock by $0.06 to $0.07, with accretion expected to increase in 2018. The transaction consideration consists of an upfront payment of approximately $450 million, comprised of $360 million of cash and 2.7 million shares of Quanta Services common stock valued at approximately $90 million, with a cash and stock earnout that could provide maximum additional consideration of $100 million if cumulative three-year EBITDA targets are achieved. We welcome all of Stronghold's employees to the Quanta family." Stronghold is led by a multigenerational, experienced and well respected management team and, importantly, has a world-class, industry leading safety record. 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. "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. "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," said Duke Austin, President and Chief Executive Officer of Quanta Services. Stronghold's operations will be reflected in Quanta's Oil and Gas Infrastructure services segment. The industrial services market is a natural service line expansion for Quanta, further enabling Quanta to meet energy customers' needs. Stronghold generated revenues of approximately $500 million for the full year of 2016 and has a workforce averaging approximately 2,800 employees. The company has achieved strong organic growth by leveraging its operational excellence to expand into ten distinct specialty services companies, each providing platforms for future growth. Headquartered in La Porte, Texas, Stronghold has a strong presence in the strategically important Gulf Coast refinery and petrochemical market and serves nearly all regions of the United States. (Stronghold), a leading specialized services company that provides high pressure and critical path solutions to the downstream and midstream energy markets. (NYSE:PWR) announced today that it has completed the acquisition of Stronghold, Ltd. served as legal advisor to Quanta for the transaction.HOUSTON, J/PRNewswire/ - Quanta Services, Inc. served as financial advisor and Baker Botts L.L.P. With a skilled, dedicated and high-quality workforce, Stronghold will serve as a platform operating unit of Quanta. Stronghold's existing management team will remain in place, with founder Joe Durham continuing in his leadership role as Chief Executive Officer of Stronghold. The transaction consideration consists of an upfront payment of approximately $450 MM, comprised of $360 MM of cash and 2.7 MM shares of Quanta Services common stock valued at approximately $90 MM, with a cash and stock earnout that could provide maximum additional consideration of $100 MM if cumulative 3-yr EBITDA targets are achieved. Stronghold generated revenues of approximately $500 MM for the full year of 2016 and has a workforce averaging approximately 2,800 employees. 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. and Stronghold Specialty, Ltd., a specialized services company that provides high pressure and critical path solutions to the downstream and midstream energy markets. announced that it has completed the acquisition of Stronghold, Ltd.
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