Bird Construction to buy Stuart Olsen; most of $96.5 million going to lenders

MISSISSAUGA, Ont. — Bird Construction Inc. will acquire Calgary-based construction services company Stuart Olson Inc. in a deal valued at $96.5 million.

The combined business would employ about 5,000 people across Canada and generate about $2.5 billion in annual revenue. It also expects $25 million in cost savings by the end of 2021.

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Under the plan, Mississauga, Ont.-based Bird Construction will pay a combination of $30 million in cash and $66.5 million worth of common shares valued at $6.32 each.

Bird shares closed Wednesday at $6.68, up 14 cents, at the Toronto Stock Exchange. Stuart Olson shares lost nearly two-thirds of their value and closed at 32.5 cents, down 56.5 cents.

Most of the payment will go to Stuart Olson's lenders and debenture holders and only about $4 million will go to current shareholders of Stuart Olson.

The transaction will be facilitated by Canso Investment Counsel Ltd., which will acquire Bird shares for $40 million cash.

Canso will end up with 18.8 per cent of Bird's shares.

The deal, which is subject to shareholder and regulatory approvals, is expected to close by the end of the year.

This report by The Canadian Press was first published July 29, 2020

Companies in this story: (TSX:BDT, TSX:SOX)

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