Stantec buys North American and Asia-Pacific businesses of Cardno
Stantec has acquired the North American and Asia-Pacific businesses of Cardno, an Australia-based design and engineering firm, for approximately US$500 million.
As part of the deal, Cardno will retain its South American and international development businesses, which number about 1,250 people.
The acquisition, which is expected to close in December of this year, will strengthen Stantec’s environmental services and infrastructure practices in the US and Australia with an additional 2,750 employees.
Stantec’s US headcount will grow from 9,000 to 10,500 people, while its Australian headcount will increase 80% to 2500 employees.
Stantec’s environmental services business will now represent 20% of its pro-forma net revenues, with its US environmental services practice growing by more than 60%. Its combined infrastructure practice will grow to 30% of revenues, positioning the firm to benefit from global stimulus spending and key geographies. Stantec will also increase its presence in local and federal government programs, infrastructure services, and urban development.
Prior to the deal, Cardno had US$978 million in annual revenue, with about US$600 million from outside of Australia.
“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,” said Gord Johnston, president and CEO of Stantec.
Susan Reisbord, CEO of Cardno, added, “Joining Stantec offers a tremendous opportunity to the people of both companies to accelerate our combined growth given how complementary our strengths are in the regions we operate.”
Headquartered in Edmonton, Stantec provides a wide range of design and engineering services to clients across industries. The firm has more than 22,000 employees globally and annual revenue of US$3.26 billion.
