Quanta Services, Inc. will acquire Price Gregory Services, Incorporated, a Houston, Texas-based infrastructure company that services natural gas pipelines in a $350 million cash and stock transaction.

The sale price includes 11.1 million shares of Quanta common stock, valued at about $250 million, and a $100 million cash payment to Price Gregory stockholders.

In January 2008, SCF Partners, also based in Houston, bought a minority stake, in Gregory & Cook Construction Inc., a provider of water and sewer pipeline construction services, from Price Gregory Services Inc. A few months later, in March, the Houston-based private equity firm financed the company's merger with the Dallas-based pipeline contractor H.C. Price Co. to create Price Gregory Services Inc.

In speaking with MergersUnleashed, John R. Colson, Quanta’s chairman and chief executive officer noted that the natural gas business has declined over the past few years, but said, “We expect 2010 will probably a troth year.”

In addition to near-tern price increases, Colson predicted natural gas prices to rise considerably as solar and wind energy gains popularity. He said the energy source will be a preferable back-up to address the intermittency of renewable energy.

In October 2008, Quanta named James F. O’Neil as its president and chief operating officer. In the same month, the infrastructure company acquired InfraSource Services, Inc., an infrastructure company for electric power, gas and telecommunications utility providers.

Calls placed to SCF Partners were not returned by press time.

Energy industry