Stantec announced that it has 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 the Select Assets for aggregate cash consideration of US$500 million representing 9.4x the Select Assets’ 2022 expected pre-IFRS16 adjusted EBITDA post-synergies.

Strategic Highlights

• In alignment with its strategic plan, Stantec is selectively acquiring the most strategically complementary assets of Cardno.
  • Cardno’s Latin American operations and International Development business are excluded from the Acquisition.
• Combined Environmental Services business to represent 20% of Stantec’s pro forma net revenues.
  • Augments Stantec’s position as a leader in sustainability, growing its US Environmental Services practice by more than 60% and increasing its exposure to the $9 trillion in spending on ecosystem restoration that the United Nations forecasts by 2030.
• Combined Infrastructure business to represent 30% of Stantec’s pro forma net revenues.
  • Bolsters Stantec’s position to benefit from global stimulus spending in key geographies.
• Adds approximately 2,750 professionals in regions and sectors that align with Stantec’s growth objectives.
  • Nearly doubles Stantec’s Australia footprint to 2,500 employees and establishes the critical mass and diversity to further accelerate growth in this region.
  • Meaningfully increases United States footprint to 10,500 employees.
• Complementary blue-chip clients enhance presence and growth prospects in local and federal government programs, infrastructure services, urban development, and other growing areas.
• Expands growth platforms in government services and health sciences with significant cross-selling opportunities.
• Strong cultural alignment with complementary vision, values, and entrepreneurial mindset.

“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 Chief Executive Officer. “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.”

About Stantec
Communities are fundamental. Whether around the corner or across the globe, they provide a foundation, a sense of place and of belonging. That’s why at Stantec, we always design with community in mind. We care about the communities we serve—because they’re our communities too. This allows us to assess what’s needed and connect our expertise, to appreciate nuances and envision what’s never been considered, to bring together diverse perspectives so we can collaborate toward a shared success. We’re designers, engineers, scientists, and project managers, innovating together at the intersection of community, creativity, and client relationships. Balancing these priorities results in projects that advance the quality of life in communities across the globe.

Stantec.com

About Cardno
Cardno is a professional infrastructure and environmental services company, with specialist expertise in the development and improvement of physical and social infrastructure for communities around the world. Cardno’s team includes leading professionals who plan, design, manage and deliver sustainable projects and community programs.

Cardno.com