Stantec has signed an agreement for the sale of its construction division, MWH Constructors, to funds managed by Oaktree Capital Management, L.P (“Oaktree”).
The sale of MWH Constructors is inclusive of MWH Constructors’ UK and U.S. divisions and Slayden Constructors, Inc.
MWH Constructors joined Stantec through the MWH acquisition in 2016.
The divestiture concludes the strategic review of construction services Stantec announced in April 2018. The strategic review set out to determine an option that would optimize the value of MWH Constructors and provide the best prospects for employees, clients, and shareholders.
Gord Johnston, Stantec president/CEO.
“MWH Constructors has growth opportunities in the United Kingdom and the United States, and we believe this divestiture will better allow them to invest in and pursue growth while continuing to serve their clients,” says Gord Johnston, Stantec president/CEO, in a media release.
MWH Constructors provides a full range of design, start-to-finish preconstruction, construction, construction management, and start-up and commissioning services, primarily for the water and wastewater markets in the U.S. and the UK.
With the pending divestiture of MWH Constructors and the 2017 divestiture of Innovyze, Stantec will continue to focus on its core consulting services business globally.
Stantec has announced eight strategic acquisitions so far in 2018.