2011-05-12-2011-04-26

Bought Canadian pipeline and facility construction services company with assets in AB &BC.

MasTec Inc., Coral Gables, Fla., (NYSE: MTZ) has acquired Fabcor TargetCo Ltd. and its subsidiaries for approximately $21.1 million in cash, the assumption of $8.8 million in debt, which was subsequently paid off, plus a five-year contingent earnout.

Fabcor is a Canadian pipeline and facility construction services company with offices in Grand Prairie, Alberta, and Dawson Creek, British Columbia, Canada. Fabcor's pipeline and facility construction services to the oil and gas industry include new pipeline construction; pipeline modification and replacement services; well-site and compressor station construction services; and gas-plant modification and plant-commissioning support services.

Fabcor had a strong balance sheet at closing, with $26.3 million in tangible net worth, $15 million of which was related to pipeline construction equipment. Fabcor has worked for most major oil and gas companies in Canada, including Murphy Oil Corp., Encana Corp., Calgary, (Toronto, NYSE: ECA) and QuicksilverResources Inc., Fort Worth, Texas (NYSE: KWK). Fabcor was recently awarded a contract to construct a 100 MMcf/d natural gas processing plant in British Columbia.

MasTec anticipates significant opportunities for energy infrastructure work in Canada during the coming years and that Fabcor will provide MasTec the platform it needs to provide those services in a variety of areas. While Fabcor's initial focus will be on pipeline and facility related projects, MasTec plans to leverage this investment and participate in other areas of the Canadian energy infrastructure build-out.