Bob Gomes (left) and Alan Krause. Image: Stantec.
Stantec has entered into a merger agreement to acquire MWH Global, an engineering, consulting and construction management company based in Broomfield, Colorado. Focused on water and natural resources for built infrastructure and the environment, MWH has 6,800 worldwide employees in 187 offices in 26 countries. It has been involved in technically significant water and natural resources projects around the world, including the Panama Canal Third Set of Locks Project.
In its announcement on March 29, Edmonton-based Stantec said the acquisition will enable it to become a global leader in water resources infrastructure while earning greater presence in the United Kingdom, Australia, New Zealand, South and Central America, Europe and the Middle East.
Stantec will acquire all of the issued and outstanding capital stock of MWH for US$793 million, but the transaction is valued at approximately US$795 million.
The press release said that key members of the management team of MWH will be joining Stantec in leadership positions after the acquisition closes. Alan Krause, MWH chairman and chief executive officer, and David Barnes, MWH chief financial officer, are committed to joining Stantec after the Acquisition Closing Date to ensure a successful integration.
Krause said: “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.”
Bob Gomes, Stantec president and chief executive officer, said: “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. 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.”
Stantec sees another advantage in that the acquistiion will enhance the company’s abilities to cross sell to different markets, e.g. providing water-related design services to energy and industrial clients. In addition, the company expects to cross-sell Stantec’s buildings and environmental services to MWH’s client base.
The companies believe that consolidation in the engineering and construction sector will continue, and therefore large scale global capabilities will be important factors in competing, particularly on large and complex projects.
As well Stantec hopes to build upon the strength of MWH’s construction expertise, most of which has been in the U.S. and the U.K.
To read the Stantec press release of March 29, 2016, click here.