Stantec’s Acquisition of MWH
Stantec announced its results for the second quarter of 2016 on August 4th. The second quarter numbers reflected the company’s major acquisition of the Colorado based company MWH. The 6,800 person consulting and construction management firm with 187 offices distributed across 26 countries focuses on water and natural resources for built infrastructure and the environment.
The acquisition closed pursuant to the agreement announced by both firms on March 29, 2016. MWH shareholders voted 99.97% in favour of approving the acquisition. Stantec said the acquisition which closed in May “added significant gross revenue to many areas of Stantec’s legacy consulting services business and greatly expanded global operations”.
New Opportunities
- MWH brings 6,800 people to the Edmonton base Stantec, bring the company to 22,000.
- MWH brings capabilities that are new to Stantec, including its Engineering and Technical Services group, which provides water-related design services to key hydro-power, oil and gas, mining, and industrial clients
- MWH further contributes construction management, program management, and management consulting business services related to water infrastructure.
- MWH has a significant range of capabilities, with the majority being construction management at-risk performed on water-related projects in the United States and the United Kingdom
- Stantec completed the financing of $1.25 billion syndicated senior secured credit facilities, consisting of an $800 million senior secured revolving credit facility, and a $450 million senior secured term credit facility (together the “New Credit Facilities”).
- A new 66-storey Stantec Tower is under construction in downtown Edmonton and is expected to be completed in 2019. The developer is ICE District Properties, and Stantec will occupy 19 floors.
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