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LISTING: TORONTO STOCK EXCHANGE
TORONTO, Jan. 17, 2013 /CNW/ - Bird Construction Inc. ("Bird") (TSX:
BDT) today announced that it has completed its previously announced
acquisition of all of the outstanding shares of Nason Contracting Group
Ltd. ("Nason"). The total cost of the acquisition, including
transaction expenses, will be approximately $13.3 million.
The $12.8 million purchase price and related transaction expenses of
$0.5 million were funded with approximately $8.3 million of existing
working capital and by the issuance from treasury of 363,007 common
shares of Bird, valued at $5.0 million based on the volume-weighted
average trading price of Bird's common shares on the Toronto Stock
Exchange for the 10-trading day period ended January 16, 2013.
Nason is a recognized leader in the construction of water and wastewater
facilities in western Canada. Nason's revenue for their previous four
full fiscal years averaged $37.0 million. The company has a 40-year
track record of successful construction projects throughout Alberta,
British Columbia, Saskatchewan and the Yukon and Northwest
Territories. The company's head office, shops and yard are located in
St. Albert, Alberta.
Nason performs the majority of its work with its own forces and has
particular strength in the execution of mechanical, electrical and
instrumentation work. The company has a highly-skilled staff of over
65 professional and craft employees. Nason's management team members
will remain as employees and will assist Bird in the management of
Nason's ongoing operations.
"The completion of this transaction continues Bird's ongoing focus to
grow the company by looking for strategic opportunities to complement
our current market scope," commented Tim Talbott, President and C.E.O.
of Bird. "The addition of Nason's strong contracting capabilities in
their area of specialization and their qualified construction
professionals to the Bird organization will enhance the value that Bird
provides to its shareholders."
Nason's and Bird's businesses are complementary. 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 of such projects and in the self-performance of the
civil and underground portions of the projects. Bird's general
contracting and civil construction expertise will allow Nason to expand
their operations. As well, Bird's expertise in design-build projects
will provide further growth opportunities for Nason, particularly as it
relates to the public-private partnership delivery method which is a
growth area in the water and wastewater market. Further, Nason's
business is focused on the public market. Bird's contacts and
expertise in the industrial market will open up new opportunities for
both companies. Nason has extensive experience working on remote job
sites which will be a particular advantage servicing the resource
For a synopsis of the transaction, please refer to Bird's website at www.bird.ca.
This press release contains forward-looking statements that involve a
number of risks and uncertainties because they relate to events and
depend on circumstances that will occur in the future. Many factors
could cause actual results and developments to differ materially from
those expressed or implied by these forward-looking statements.
SOURCE: Bird Construction Inc.
For further information:
T.J. Talbott, President & C.E.O. or
S.R. Entwistle, C.F.O.
Bird Construction Inc.
5403 Eglinton Avenue West
Toronto, ON M9C 5K6
Phone: (416) 620-7122
Fax: (416) 620-1516