Stantec Inc. [NYSE: STN] disclosed that it has acquired the North America and Asia Pacific engineering and consulting groups (the Select Assets) of Cardno Limited. The global leadership of Stantec in sustainability will be further improved by the passion and entrepreneurism of Cardno’s professionals.
The important strengths of Cardno in ecosystem recovery, health sciences, infrastructure, water, and government services are completely harmonizing with Stantec’s offerings in these growth sectors of the US and Australia. Together, both the firm will continue to set the standard for sustainable design and alleviate climate change.
Furthermore, as per the acquisition agreement, Stantec will purchase the Select Assets for an aggregate cash payment of US$500 million which is around CA$620 million. It represents 9.4x the Select Assets’ 2022 anticipated pre-IFRS16 adjusted EBITDA post-synergies. The acquisition is due to be completed by the end of 2021.
Additionally, the acquisition agreement will be finalized after the authorization of the shareholders of Cardno. Moreover, Cardno believed that joining Stantec provides a remarkable opportunity to the people of both firms. It will help firms to speed up growth given how complementary their strengths are in the regions the firms operate.
The acquisition will be financed with current funds and credit facilities. It is anticipated to result in an approximate 1.5x pro forma net debt to adjusted EBITDA ratio upon closing.