Quanta buys Pennsylvania transformer manufacturer for $300 M
USA, Houston: Utility infrastructure company Quanta Services Inc. has paid about $300 million for Pennsylvania Transformer Technology LLC.
Pennsylvania Transformer Technology LLC produces power transformers, substation units and other components. Quanta that executives say the purchase gives them another “important, secure and domestic supply chain solution” in a growing energy construction market.
Houston-based Quanta used both cash and stock for the purchase of the company which was founded in 1996 but traces its transformers roots to 1929. The company has annual revenues of about $100 million and runs its main factory, an 18-building complex that formerly housed McGraw-Edison and Cooper Power Systems, southwest of Pittsburgh as well as a smaller plant in Raeford, North Carolina.
Transformers have been a pain point for many utilities since COVID-19 began disrupting supply chains nearly four years ago. Early this year, several utility officials told T&D World they were being quoted multi-year wait times for new transformers. And with billions of dollars being funneled into the expansion of the country’s generation, transmission and distribution networks, the risk of persistent or recurring shortages of various parts and services has risen from its historical baseline.
Source: T&D World