TORONTO - Bird Construction Inc. will spend about $12.8 million to buy all the outstanding shares of Nason Contracting Group Ltd., a builder of water and wastewater facilities in Western Canada.
The Toronto-based company, one of Canada's largest diversified construction firms, said the acquisition price and $500,000 of related expenses will be funded from $8.3 million of existing working capital and $5 million of shares to be issued.
The transaction is expected to be completed around Jan. 15.
Nason's revenue for their previous four full fiscal years averaged $37 million and the company has more than 65 employees. Headquartered in St. Albert, Alta., it has been in business for 40 years in Alberta, British Columbia, Saskatchewan, the Yukon and the Northwest Territories.
Bird (TSX:BDT) said the businesses of the two companies are complementary as Nason's primary expertise is in the mechanical, electrical and instrumentation aspects of water and wastewater projects whereas Bird's expertise lies in the general contracting, civil and underground portions of the projects.
Bird said its expertise will allow Nason to grow, especially in public-private partnerships in the water and wastewater market.
CEO Tim Talbott said Bird has been considering ways to expand sources of revenues through different market segments. The Nason deal provides its first opportunity to participate directly in the mechanical, electrical and instrumentation markets, he said.
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