Southwest Gas Holdings, Inc. to acquire Linetec Services for $299m.

Southwest Gas Holdings, Inc. (SWGH) has entered into a definitive agreement under which its wholly-owned subsidiary, Centuri Construction Group, Inc. will acquire Linetec Services, LLC. Linetec is a premier provider of recurring maintenance, refurbishment, upgrade, and installation services for electrical transmission and distribution infrastructure throughout the Gulf Coast and Mid-Atlantic regions. Under the terms of the transaction, Centuri will acquire an 80% ownership interest in Linetec for approximately $299m in cash, and will have the option to acquire the remaining 20% ownership interest in Linetec in increments during the next five years. The overall initial transaction cost of approximately $336m, which includes working capital adjustments and other transaction expenses, is expected to be financed with a combination of approximately $95m of debt from Centuri's credit facility, and approximately $241m of cash proceeds from a SWGH public equity offering. The transaction, which is expected to be accretive to SWGH's earnings within the first year, will broaden Centuri's capabilities in the electric services infrastructure space and extend its geographic footprint into the Southeast, including the Gulf Coast and Mid-Atlantic regions. As a result, the transaction will not only enhance Centuri's service offerings for existing customers, but also will enable it to serve additional customers in new markets with an increased array of capabilities.