Edmonton-based engineering firm Stantec announced it has entered into agreements to acquire Cardno Limited’s North America and Asia Pacific engineering and consulting groups in a deal worth approximately $620 million (US$500 million).
According to Stantec, it is acquiring Cardno’s assets that most align with its strategic plan and support its position as a leader in sustainability. The move will grow Stantec’s U.S. environmental services practice by more than 60% said Stantec, increasing its exposure to the US$9 trillion that the United Nations expects will be spent on ecosystem restoration by 2030.
The acquisition will increase Stantec’s global workforce by approximately 2,750 employees and nearly double the company’s footprint in Australia, to 2,500 professionals.
The acquisition does not however, include Cardno’s operations in Latin America or its international development businesses.
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Other strategic highlights according to Stantec include:
- Combined environmental services business to represent 20% of Stantec’s pro forma net revenues.
- Combined infrastructure business to represent 30% of Stantec’s pro forma net revenues.
- Increases Stantec’s U.S. footprint to 10,500 employees.
- Complementary blue-chip clients enhance presence and growth prospects in local and federal government programs, infrastructure services, urban development and other growing areas.
- Expands growth platforms in government services and health sciences.
- Strong cultural alignment between the two companies, with complementary vision, values and entrepreneurial mindset.
The acquisition is expected to close by the end of 2021, said Stantec.