Calgary

Bird Construction to buy Stuart Olson but most of $96.5M going to lenders

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

Combined business would employ about 5,000 people across Canada

The Central Library is one of many projects Stuart Olson has worked on. The Calgary-based construction company is to be acquired by Bird Construction Inc. (Dan McGarvey/CBC)

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.

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.

Most of the payment will go to Stuart Olson's lenders and debenture holders and $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.

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