Stantec has entered into a definitive merger agreement pursuant to which it will acquire MWH Global, the Colorado-based global engineering, consulting and construction management firm focused on water and natural resources for built infrastructure and the environment. With the acquisition of MWH and its 6,800 worldwide employees, Stantec will gain a position as a global leader in water resources infrastructure while earning greater presence in key targeted geographies, including the UK, Australia, New Zealand, South and Central America, Europe and the Middle East.
Under the terms of the all-cash deal, unanimously approved by the boards of directors of both companies, Stantec will acquire all of the issued and outstanding capital stock of MWH for a purchase price of approximately C$793 million.
“MWH brings a global presence and reputation in water infrastructure that will advance Stantec’s position as a top-tier design firm within the highly attractive global water market,” says Bob Gomes, Stantec President and CEO. “Together, we share a commitment to our communities and have the combined talent to support the most technically advanced clients and projects locally and around the world.”
MWH has a network of approximately 187 offices in 26 countries. The firm has a history of engaging in engineering, construction and management consulting for some of the most technically significant water and natural resources projects in the world, including the Panama Canal Third Set of Locks Project.
“We are excited to join the expertise and experience of Stantec and MWH in a transaction that will enable us to thrive and grow amidst an increasingly complex industry landscape by strengthening our combined ability to solve the most pressing water, transportation and infrastructure challenges today,” says Alan Krause, MWH Chairman and CEO. “Our highly complementary cultures, shared approach to client service and extended global reach should yield multiple benefits for our clients, employees and the communities we serve.”
Key members of the management team of MWH, including the presidents of key business units, will be joining Stantec in significant leadership positions after the acquisition closes. Alan Krause and David Barnes, MWH Chief Financial Officer, are committed to joining Stantec after the acquisition closing date to ensure a smooth and successful integration.
The acquisition is aligned with Stantec’s growth strategy of building a top-tier presence in the markets it chooses to serve. Historically, Stantec’s acquisition strategy has been focused on acquisitions in North America to develop a mature presence across its business portfolio. Stantec has concurrently positioned itself to be able to execute on the right opportunity at the right time to expand its geographic footprint and service capabilities to further diversify its industry leading platform.
The engineering and technical services offered by MWH are expected to add global capabilities in water-related design services to Stantec’s key mining clients. The global client portfolio of MWH is expected to generate opportunities for Stantec’s Energy & Resources business operating unit to cross-sell its engineering services and provide clients with a broader enhanced service offering through the complete project life cycle.
Management believes that the engineering and construction sector will continue to consolidate and that both scale and global capabilities will be important competitive differentiators, particularly on large and complex projects. MWH brings a history and experience of operating in global markets. Augmented by Stantec’s strong balance sheet, history of operational effectiveness and experience in successfully completing and integrating acquisitions, the combined company is expected to be well positioned to grow both organically and by acquisition in the future.
The picture shows Bob Gomes, President & CEO Stantec along with Alan J. Krause, Chairman & CEO MWH Global
