Matrix Service To Buy Kvaerner North American Construction - Quick Facts

(RTTNews) - Matrix Service Co. (MTRX) has agreed to acquire Kvaerner North American Construction, Ltd. or "KNAC Ltd" and substantially all of the assets of Kvaerner North American Construction, Inc. or "KNAC Inc", collectively the "Business", from units of Kvaerner ASA. The all-cash transaction is worth $80.3 million, net of cash acquired and other adjustments. The consideration price would be paid through a combination of cash on hand and borrowings under the company's senior credit facility.

KNAC Inc. and KNAC Ltd. are premier providers of maintenance and capital construction services to North American power generation, integrated iron and steel, and industrial process facilities. The Business would continue to be headed by their existing, talented management and operational teams.

Matrix' President and Chief Executive said, "The Business has over 35 years of successful delivery of maintenance and capital construction services, and this transaction will provide Matrix Service Company with a unique service offering that complements and enhances our existing platform. Strategically, this transaction achieves many of our goals by expanding our geographic footprint in the mid-west and Ontario, enhancing our capital construction skills, and further strengthening our market position as a union contractor."

The transaction, which is expected be accretive in the first year of ownership, may close in late calendar year 2013. Stifel, Nicolaus & Company, Incorporated provided a fairness opinion and is acting as exclusive financial advisor, and Conner & Winters, LLP is acting as legal counsel, to Matrix Service Company in connection with the transaction.