Electrical Acquisition Creates Integrated EPC For Data Centers

Research evidence excerpt

Electrical Acquisition Creates Integrated EPC For Data Centers

rical contractor focused

on critical infrastructure. One of the largest self-perform U.S. electrical workforces including

~2,700 skilled field electricians/technicians (IBEW) with track record to deliver complex, large-

scale projects in fast-growing data center markets: TX, Midwest, South, etc. Hyperscalers 70%

of revenues. End-to-end electrical solutions incl design, construction, project mgmt, engineering,

prefab (~300,000 sq ft facility), modular manufacturing/maintenance/repair/retrofits. Chair and

CEO Stewart (+26 yrs), as well as existing mgmt team to remain in place. Est. FY26 $1.6-$1.7B

revenue, $225-250M adj EBITDA, $1.06-1.32 adj EPS before synergies. 80% revenue CAGR (23-26)

and $1.4Bn backlog (as of May). Superior will be incl in Power Delivery driving low-double digit FY26

margins. Expansion of capabilities/offerings across data center and mission-critical mkts now

inside-the-fence electrical systems complimentary to MTZ outside-the-fence power generation, gas

infrastructure, transmission, substations, comms and civil work. Diversifies and deepens customer

base strategically positioned in data center corridors. Addition of increasingly scarce self-perform skilled

labor with scale at ~3,000 team members up from 800 3 years ago (+50% CAGR). MTZ now a formidable

AI infrastructure EPC.

Transaction terms reasonable at an attractive ~6.9x EBITDA well below peers and other recent

sector M&A. Purchase of $1.65Bn incl $475Mn MTZ common shares and $1.175Bn in cash

(plus earn-out payments over 36-months) to be funded with cash on hand, existing credit facility, Julien Dumoulin-Smith * | Equity Analyst

+1 (281) 774-2066 | jds@jefferies.com

and two delayed draw term loan facilities.