Just add water Stantec buys MWH Global

STANTEC has agreed to buy MWH Global for US$795m as it seeks to take a leading position providing engineering services to the water sector. 

Canada-based Stantec provides engineering services to a wide range of sectors including oil and gas, mining and construction but until now has primarily bought businesses that strengthen its focus in North America. Buying MWH Global – approved by both company’s boards – will give it a leading position in the water sector and a wider focus with offices in 26 countries including the UK, Australia, New Zealand, and the Middle East. This, the company says, will widen the geographic reach of Stantec’s offerings to its hydropower, oil and gas, mining and industrial clients.

“MWH brings a global presence and reputation in water infrastructure that will advance Stantec’s position as a top-tier design firm within the highly attractive global water market,” says Bob Gomes, Stantec CEO.

Stantec’s management said that continuing consolidation within the engineering and construction sectors will make both scale and global capabilities important competitive differentiators, particularly on large and complex projects.

The tie-up will bring together the 15,000 employees at Stantec with 6,800 from WMH Global. It must now be approved by shareholders and competition regulators. Stantec expects the deal to close in Q2.