m_and_a
confidence high
sentiment positive
materiality 0.90
Dycom Industries to buy Power Solutions for $1.95B, gains data center electrical contracting
DYCOM INDUSTRIES INC
- Purchase price $1.95B: ~$293M Dycom stock (1,011,069 shares) + cash; expected close before fiscal year end.
- Power Solutions generates ~$1B revenue (2025E), >$1B backlog, mid-to-high teens adjusted EBITDA margins.
- Deal immediately accretive to adjusted EBITDA margin and adjusted EPS; pro forma net leverage <3.0x at close, expected to de-lever to ~2.0x in 12-18 months.
- Adds 2,800+ skilled employees; Power Solutions retains brand and management in Bowie, MD.
- Committed financing: $1B term loan A, $700M bridge loan, $445M backstop facility from Bank of America and Goldman Sachs.
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