Southwest Gas Holdings To Buy Linetec Services

(RTTNews) - Southwest Gas Holdings Inc. (SWX) Monday said it has agreed to buy Linetec Services LLC, a provider of maintenance, refurbishment, upgrade, and installation services for electrical transmission and distribution infrastructure throughout the Gulf Coast and Mid-Atlantic regions.

"This is an exciting acquisition that supports Centuri's growth plans and enables our fast-growing infrastructure services business to stay ahead of client needs and industry trends," said John Hester, President and Chief Executive Officer of Southwest Gas Holdings.

Southwest Gas will acquire Linetec through its subsidiary Centuri Construction. Under the terms of the transaction, Centuri will acquire an 80% ownership interest in Linetec for about $299 million in cash, and will have the option to acquire the remaining 20% ownership interest in Linetec in increments during the next five years.

The overall initial transaction cost of approximately $336 million, which includes working capital adjustments and other transaction expenses, is expected to be financed with a combination of approximately $95 million of debt from Centuri's credit facility, and approximately $241 million of cash proceeds from a SWGH public equity offering.

The transaction, which is expected to be accretive to SWGH's earnings within the first year, will broaden Centuri's capabilities in the electric services infrastructure space and extend its geographic footprint into the Southeast, including the Gulf Coast and Mid-Atlantic regions.