Stantec-MWH deal creates global water powerhouse
Published March 31st, 2016
Stantec’s $795 million take-over of MWH Global – formally announced on Tuesday – will add some much-needed geographical diversification to the NYSE-listed acquiror’s revenues, 97% of which were derived from North America last year.
The deal – which values MWH at 9.5 times adjusted EBITDA before synergies – will see Stantec’s design capabilities complemented by MWH’s construction know-how to create a leading global water engineer.
Despite struggling to maintain revenue growth in recent years, MWH was ranked number 4 on ENR’s list of international design firms in water in 2015, while Stantec was ranked at number 9. On a pro forma basis, the combined firm will rank at number 12 on ENR’s list of top global design firms overall.
Following the deal’s completion – expected in Q2 2016 – water will become Stantec’s single largest business line, accounting for almost a quarter of the combined firm’s pro forma 2015 revenues of Can$4.56 billion (US$3.45 billion).