Canada-based Bird Construction has entered into a definitive agreement to acquire civil infrastructure contractor Jacob Bros Construction for an estimated C$135m ($98.03m).
The transaction is expected to be finalised early in the third quarter (Q3) of this year, subject to regulatory approvals and customary closing conditions.
Fellow Canadian company Jacob Bros specialises in civil infrastructure projects, including the construction of airports, seaports, rail, bridges, and energy projects.
The acquisition is in line with Bird’s mergers and acquisitions strategy to integrate high-performing businesses that complement its existing operations and support cross-selling opportunities.
Shareholders of Jacob Bros, CEO Scott Jacob, and COO Todd Jacob, will join Bird to lead the integration of Bird’s Western Infrastructure business segment with its current operations.
The combined company is expected to leverage opportunities in electrification, as well as low-carbon and green infrastructure solutions.
The addition of Jacob Bros to Bird’s portfolio is expected to enhance the company's revenue from infrastructure projects.
This aligns with Bird’s strategy to diversify its portfolio across its three core verticals: industrial, buildings, and infrastructure.
Bird president and CEO Teri McKibbon said: “The combined company will have a greater platform from which it will be able to access larger-scale projects and expand career opportunities for employees.
“The acquisition will enable Bird to advance our strategic focus on complex work in high-demand, higher-margin self-perform sectors, which we expect will contribute to continued margin enhancement.”
Todd Jacob added: “We are excited about the opportunity to leverage the synergies between Jacob Bros and Bird to service a wider range of projects and customers and to continue to grow the brand. Proud of our People, Proud of our Projects.”
Other than equipment debt assumption, Jacob Bros will be bought on a cash-free, debt-free basis.
In January this year, Bird Construction secured a contract to oversee the final phase of the Fredericton Justice Building in New Brunswick, Canada.
