Infrastructure giant MasTec is expanding its electrical services with the $1.7 billion acquisition of Ohio-based The Superior Group.
The Coral Gables-based company will pay $1.2 billion in cash and $475 million in stock for Electrical Specialists, which does business as The Superior Group, the South Florida Business Journal reported. The deal includes a possible earnout payment based on The Superior Group’s financial performance for the three years following the deal’s closing, which is expected by the end of this month.
MasTec, led by Jose Mas, said the acquisition will allow the company to provide a broader range of services because it has not traditionally performed the type of electrical work Superior Group specializes in. It will also strengthen MasTec’s ability to capitalize on growing demand for data centers, power and mission-critical infrastructure, Mas said.
Founded in 1925, The Superior Group has more than 3,000 employees working across the country, the outlet said. The company has been led by the Stewart family since the mid-1980s, with Bryan Stewart as the current CEO. He will retain his position after the acquisition.
The Superior Group is expected to generate $1.6 billion to $1.7 billion in revenue this year, with the adjusted core earnings estimated at $225 million to $250 million.
MasTec generated $14.3 billion in revenue last year, up 16 percent from the previous year. With the acquisition, the company expects The Superior Group to add $2.2 billion to $2.5 billion in revenue next year.
Lazard served as MasTec’s financial adviser on the deal. Holland & Knight LLP was the company’s transaction adviser, and Fried, Frank, Harris, Shriver & Jacobson LLP acted as the legal adviser. The Superior Group received financial advice from UBS Investment Bank and legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP.
Mas has made several other big real estate moves in recent years. In April, the billionaire paid $14.9 million for a waterfront property in the Gables Estates neighborhood of Coral Gables after selling his mansion in the same neighborhood for $32 million last year.
Alongside his brother Jorge Mas and his business partner David Beckham, Mas is also a co-owner of the Major League Soccer team Inter Miami CF.
—Grace McClung
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