Acquisition Positions the Company for Accelerated Growth in Digital and Data Center Infrastructure Services
Dycom Industries, Inc. (NYSE: DY), a leading provider of specialty contracting services to the telecommunications and digital infrastructure industries throughout the United States, today announced that it has completed its previously announced acquisition of Power Solutions, LLC (“Power Solutions”), one of the Mid-Atlantic’s largest electrical contractors serving data centers. The purchase price on a cash-free, debt-free basis was comprised of approximately $1.63 billion of cash, including an estimated working capital adjustment, and approximately 1.0 million shares of Dycom common stock.
“Today’s announcement represents a significant milestone for Dycom, reinforcing the Company’s position as a leader in the fast-growing digital infrastructure industry,” said Dan Peyovich, President and Chief Executive Officer of Dycom. “We are excited to officially welcome Power Solutions to the Dycom family and look forward to working together to realize the opportunities ahead.”
Power Solutions will continue to operate under its brand within Dycom. Power Solutions’ strong management team will remain in place, and the company will maintain its headquarters in Bowie, Maryland.
As previously announced, the transaction is expected to be immediately accretive to Dycom’s Adjusted EBITDA margin and Adjusted Diluted Earnings Per Share, excluding non-cash amortization of intangible assets. It is also projected to improve free cash flow for the combined company.
In connection with the transaction, the Company amended and restated its existing credit agreement to, among other things, (i) increase the existing revolving facility commitments to $800 million from $650 million, (ii) increase the existing term loan facility to $1.540 billion from $440 million, (iii) extend the maturity of the foregoing facilities to December 2030, and (iv) establish a $600 million senior secured 364-day bridge loan facility. The proceeds of the term loan facility and the bridge loan facility were used to (i) refinance the outstanding term loans and (ii) finance the cash consideration component of the acquisition. Further details regarding the credit agreement amendment will be available in a Current Report on Form 8-K.
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
