Bought equity ownership interest in Howard Midstream Partners LLC.
Quanta Services Inc. (NYSE: PWR) sold equity ownership interest in Howard Midstream Energy Partners LLC for $221 million in cash, the company announced Dec. 9.
Quanta and its wholly owned subsidiary, Quanta Capital Solutions Inc., has successfully closed the sale which will result in a pre-tax gain to Quanta of $113 million in 4Q 2013, or $0.32 per diluted share. Certain affiliated investment funds managed by Alinda Capital Partners acquired the interest previously held by Quanta Capital.
"This investment demonstrated Quanta's ability to financially support Howard Energy's strategic growth initiatives while providing engineering and construction support to its expanding pipeline system," Jim O'Neil, president and CEO of Quanta Services, said in the release. "Mike Howard and his management team have built an impressive asset portfolio in the Eagle Ford shale region, and we wish them and their partners continued success. Quanta continues to pursue opportunities to provide customers similar financial and operational solutions to achieve their future infrastructure development needs."
The after-tax net proceeds from the sale are expected to be $175 million. Quanta intends to use the proceeds of the transaction to support its ongoing strategic growth and other corporate initiatives, including acquisitions and similar investments.
Quanta Services is a leading specialized contracting services company, delivering infrastructure solutions for the electric power and natural gas and pipeline industries. The company is based in Houston.