On 6 May Canada-based design firm Stantec closed its $795-million acquisition of MWH Global. Stantec CEO Bob Gomes reported that the deal provides MWH with better access to capital for growth and market expansion while Stantec gains from integrating a water-sector leader with a more global platform for acquisitions and lessens its dependence on the oil-and-gas sector.
David Barnes, chief financial officer of employee-owned MWH, said the publicly traded Stantec offers the necessary resources to help the combined company dominate in infrastructure engineering consulting. “We’re transitioning from an employee-owned company to being a public company,” Barnes said. “We believe this will result in a company that is better capitalized for more growth in the future. We believe both companies can grow faster together than separate.”
The acquisition of 6,800-strong MWH (headquartered in Colorado) will expand Stantec’s capabilities in water infrastructure services and also significantly increase its geographic footprint into the UK, Australia, New Zealand, Central and South America, Europe and the Middle East. It marks a key step for 15,000 strong Stantec which has, until now, generated the vast majority (97%) of its revenue from the North American market.