EDMONTON, ALBERTA, Canada — Stantec, a global sustainable design and engineering firm, entered into share purchase agreements to acquire the North America and Asia Pacific engineering and consulting groups of Cardno Limited. Under the terms of the acquisition, Stantec will acquire select assets of Cardno Limited for aggregate cash consideration of $500 million.
In alignment with its strategic plan, Stantec is selectively acquiring strategically complementary assets of Cardno. Cardno’s Latin American operations and international development business are excluded from the acquisition.
- The combined environmental services business to represent 20% of Stantec’s pro forma net revenues.
- The acquisition is designed to augment Stantec’s sustainability position, growing its U.S. environmental services practice by more than 60% and increasing its exposure to the $9 trillion in spending on ecosystem restoration that the U.N. forecasts by 2030.
- This is designed to bolster Stantec’s position to benefit from global stimulus spending in key geographies.
- This nearly doubles Stantec’s Australia footprint to 2,500 employees and establishes the critical mass and diversity to further accelerate growth in this region.
- This also meaningfully increases the U.S. footprint to 10,500 employees.
- Strong cultural alignment with complementary vision, values, and entrepreneurial mindset. The acquisition is expected to close by the end of 2021.
“Stantec’s global leadership in sustainability will be further augmented by the passion and entrepreneurism of Cardno’s professionals who, like us, work at the intersection between clients, science, and innovation to solve the ever-evolving challenges confronting communities around the world,” said Gord Johnston, president and CEO, Stantec. “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. 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.”
Susan Reisbord, group 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. Our combined Australian operations will strengthen our position as a top-tier engineering and design firm there, and this will open new opportunities for us. As this process has played out, the one thing that has been striking is the commonality between our values and cultures.”
For more information, visit www.stantec.com.