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MasTec to Buy Electrical Contractor Superior Group in $1.65 Billion Deal

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MasTec to Buy Electrical Contractor Superior Group in $1.65 Billion Deal

MasTec (MTZ) shares were up early Wednesday after the company agreed to acquire electrical contractor Electrical Specialists, doing business as Superior Group, in a roughly $1.65 billion deal.

The deal consideration comprises about $1.18 billion in cash and $475 million of MasTec's common shares, the infrastructure construction company said late Tuesday. The deal includes a potential earnout payment based on Superior Group's cumulative 36-month financial performance following the transaction's completion.

MasTec shares were up 2.1% in premarket activity Wednesday. So far this year, the stock has surged 65%.

"Superior expands our ability to serve one of the most compelling infrastructure opportunities in the market today -- the ongoing buildout of data center, power and mission-critical infrastructure," MasTec Chief Executive Jose Mas said in a statement.

For the remainder of the year, the company projects Superior Group to contribute revenue of $800 million to $900 million and adjusted earnings of $0.50 to $0.65 per share. For 2027, MasTec forecasts Superior Group to generate revenue of $2.2 billion to $2.5 billion.

"Superior's deep experience in building critical infrastructure, combined with MasTec's leadership across the power, energy and communications sectors, position us to lead the buildout of new projects throughout the US," Superior Group CEO Bryan Stewart said.

The transaction, which requires approval from regulators, is expected to complete later this month. Following completion, Superior Group will work as a new operating group of MasTec, while its current management team will remain in place.

"We believe the deal directly executes the playbook (MasTec's) management laid out at the company's analyst day in May, supplementing purely organic 2028 targets with adjacent-market M&A at a disciplined multiple, and accelerates (the company's) push toward turnkey data center delivery with greater self-perform content," Truist Securities said in a note to clients Tuesday.

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