Stantec to acquire select Cardno businesses to grow Environmental Services footprint

Stantec announced it has entered into share purchase agreements to acquire the North America and Asia Pacific engineering and consulting groups (the Select Assets) of Cardno Limited.

Under the terms of the Acquisition, Stantec will acquire the Select Assets for aggregate cash consideration of $500 million (approximately CA$620 million) representing 9.4x the Select Assets’ 2022 expected pre-IFRS16 adjusted EBITDA post-synergies.

In alignment with its strategic plan, Stantec is selectively acquiring the most strategically complementary assets of Cardno. Cardno’s Latin American operations and International Development business are excluded from the Acquisition.

Further highlights include:

  • Combined Environmental Services business to represent 20% of Stantec’s pro forma net revenues.
  • Combined Infrastructure business to represent 30 per cent of Stantec’s pro forma net revenues.
  • Adds approximately 2,750 professionals in regions and sectors that align with Stantec’s growth objectives.
  • Complementary blue-chip clients enhance presence and growth prospects in local and federal government programs, infrastructure services, urban development, and other growing areas.

“We have worked closely with Cardno for many years. Cardno Group CEO, Susan Reisbord and her team have done a remarkable job in transforming their organization and returning Cardno to a strong growth path,” says Gord Johnston, President and Chief Executive Officer. “The timing couldn’t be better to welcome their team to Stantec and grow together. Cardno’s key strengths in ecosystem restoration, health sciences, infrastructure, water, and government services are completely complementary to Stantec’s offerings in these growing sectors of the United States and Australia. Together, we will continue to set the standard for sustainable design and climate change mitigation.”

The acquisition is expected to close by the end of 2021.

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