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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 market.
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