* Stantec's ninth acquisition this year
* Burt Hill annual revenue $60 mln analyst estimates
* Stantec shares rise 2.9 pct on TSX to C$26.80
(In U.S. dollars unless noted)
OTTAWA, Sept 9 Canadian engineering firm
Stantec Inc (STN.TO) (STN.N) said on Thursday it plans to
acquire Pennsylvania-based engineering and architecture firm
Burt Hill, advancing its North American expansion drive.
Financial terms of the deal were not disclosed. Burt Hill,
which has more than 600 employees in 13 offices, is considered
a U.S. leader in school and health-care facility design,
Stantec has already struck eight acquisition deals this
year, adding about 740 staff to its 10,000 employees.
"It makes a lot of sense to acquire in this space because
architecture and engineering are extremely fractured (sectors)
in North America," NCP Northland Capital Partners analyst Maxim
"Stantec is a sizable firm, but they have only 1.5 percent
market share in North America. So obviously there are a
multitude of firms that Stantec can take over."
The industrial and infrastructure analyst estimates Burt
Hill's annual revenue at $60 million and Stantec's purchase
price at $38 million.
Edmonton, Alberta-based Stantec posted C$1.5 billion in
gross revenue in 2009, up from C$1.35 billion the previous
The company recently said it would buy San Francisco-based
architecture firm Anshen + Allen, which has 200 staff and
focuses on health care design.
"The combination of Stantec, Burt Hill, and Anshen + Allen
will create a new global architecture practice with world class
expertise in our key market sectors, particularly health care,
education, and science and technology," Stantec Chief Executive
Bob Gomes said.
Stantec shares rose 75 Canadian cents to C$26.80 on the
Toronto Stock Exchange on Thursday morning, a 2.9 percent
climb. In New York, the stock rose 3.8 percent to $25.92.
RBC analyst Sara O'Brien increased her 12-month stock-price
target for Stantec to C$33 from C$32 on Aug 31 to reflect
recently announced acquisitions. "We expect the momentum to
continue," she said in a note.
(Reporting by Susan Taylor; editing by Peter Galloway)