Bird Construction to acquire Nason Contracting Group
Bird Construction has signed an agreement to acquire Canada-based water and wastewater facilities constructing company, Nason Contracting Group, for about $12.8m.
As per the agreement, Bird Construction will buy out all the outstanding shares of Nason.
The transaction will ensure that both companies are better placed in handling water treatment work in oil sands.
In addition, it will help Nason to grow its share of the municipal water and wastewater treatment market, including public-private partnership contracts.
Bird Construction will fund the acquisition and other related expenses amounting to approximately $500,000 from its existing working capital of about $8.3m, and will also issue the company's shares worth $5m.
The shares can be issued after receiving an approval from the Toronto Stock Exchange.
Nason Contracting Group president Darrell Stang said the acquisition will provide growth opportunities to the company so that it can take up more challenging assignments within the Bird organisation.
"Nason's expertise is in mechanical, electrical and instrumentation work while Bird is a leader in general contracting and civil work," Stang added.
"Combining this expertise, we will be able to execute more complex work as well as assignments for industrial clients where our expertise is well suited to the demands of their projects."
Bird Construction president and CEO Tim Talbott said the transaction is a part of the company's strategy to increase revenue sources by entering different market segments.
"We are particularly excited about our first opportunity to participate directly in the mechanical, electrical and instrumentation markets which we believe will complement our existing service offerings," Talbott added.
Nason's strength lies in carrying out mechanical, electrical and instrumentation work and will function as a subsidiary of Bird Construction.
Subject to all customary closing conditions, the transaction is anticipated to be completed on or around 15 January 2013.
Image: Bird Construction is set to acquire water and wastewater facilities company Nason Contracting Group. Photo: Bird Construction.