MYR Group to Acquire Valley Electric From Prospect Capital for $328M

Why It Matters

The deal strengthens MYR Group’s position in a rapidly growing utility‑scale electrical contracting sector while providing Prospect Capital with liquidity for higher‑return investments.

Key Takeaways

• MYR Group pays $328 million for Valley Electric
• Deal closes around July 1, 2026
• Acquisition adds 1,200+ employees to MYR
• Expands MYR’s presence in Midwest utility markets
• Prospect Capital gains liquidity for new portfolio investments

Pulse Analysis

The U.S. utility sector is entering a phase of accelerated investment, driven by grid modernization, renewable integration, and resilience upgrades. MYR Group, a leading contractor for transmission and distribution projects, has pursued growth through acquisitions that broaden its geographic reach and service capabilities. The $328 million purchase of Valley Electric aligns with this strategy, giving MYR immediate access to a portfolio of contracts in the Midwest and a seasoned workforce. Analysts view the deal as a timely move to capture the expanding demand for high‑voltage infrastructure.

Valley Electric, founded in 1995, specializes in overhead and underground line construction for investor‑owned utilities and municipal cooperatives. Prior to the sale, the company reported annual revenues of roughly $150 million and employed more than 1,200 skilled tradespeople. By integrating Valley’s operational expertise and existing client relationships, MYR can accelerate project pipelines without the lead time required for organic hiring. The combined entity is expected to achieve cost synergies through shared procurement, standardized safety protocols, and consolidated back‑office functions, enhancing profitability on large‑scale utility contracts.

For Prospect Capital, the divestiture delivers a sizable cash infusion that can be redeployed into higher‑yielding opportunities within its diversified BDC portfolio. The exit also reduces exposure to the cyclical construction segment, allowing the firm to focus on core financial services and technology investments. Industry observers see the transaction as part of a broader consolidation trend, where larger contractors absorb niche players to meet the scale required for multi‑billion‑dollar grid projects. The deal underscores the capital intensity of utility infrastructure and the premium placed on proven execution capabilities.

Deal Summary

Prospect Capital announced the sale of its portfolio company Valley Electric to MYR Group for $328 million. The acquisition is expected to close around July 1, 2026, expanding MYR Group's presence in the electric utility sector. The deal underscores ongoing consolidation in the energy industry.