Stantec signs agreement to sell MWH Constructors

Stantec, a Canada-based design firm, has signed an agreement to sell MWH Constructors, which provides construction services to water and wastewater markets, to Oaktree Capital Management for an undisclosed amount.

The divestment of MWH Constructors includes its UK and US divisions and Slayden Constructors.

MWH Constructors became part of Stantec through the MWH purchase in 2016. MWH Constructors posted a loss of £4.6m on revenues of around £185m.

The deal is expected to close by the fourth quarter of this year

MWH Constructors offers construction management, preconstruction, construction, start-up, design and commissioning services for water and wastewater markets of the US and UK.

With this sale, Stantec completes the strategic review of construction services announced in April.

MWH Constructors has worked with  Severn Trent, Southern Water, Scottish Water Thames and Anglian in the UK and has more than 500 employees.

MWH Constructors president and chief of global operations Blair Lavoie said: “This is a positive step in the evolution of our company, and we look forward to having a partner like Oaktree with strong financial resources and a desire to invest in our future as we continue to be the leading global project delivery company in the water sector.

“In the US, we will stay with our great brands of Slayden and MWH Constructors, and in the UK, we will return to MWH Treatment.”

Stantec president and chief executive officer Gord Johnston said: “MWH Constructors has growth opportunities in the United Kingdom and the United States, and we believe this divestiture will better allow them to invest in and pursue growth while continuing to serve their clients.”

With the completion of the divestiture, Stantec intends to completely focus on its core consulting services business across the world.

Stantec appointed Perella Weinberg Partners as financial advisor, while Paul, Weiss, Rifkind, Wharton & Garrison acted as legal advisors for the deal.