TORONTO (Reuters) - Canadian engineering firm Stantec Inc (STN.TO) said on Tuesday it had agreed to purchase MWH, a water resources infrastructure company based in Colorado, for $793 million in cash.
Stantec said the acquisition of MWH, which has 6,800 employees worldwide, would make it a global leader in water resources infrastructure, increasing its presence in the United Kingdom, Australia, New Zealand, South and Central America, and Europe and the Middle East.
“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,” said Stantec CEO Bob Gomes.
Stantec said the acquisition would be financed by a combination of an equity financing and new credit facilities and is expected to generate annual cost savings of about $25 million.
The deal is subject to the approval of at least two-thirds of MWH shareholders at a special meeting to be held this month.
Reporting by Matt Scuffham; Editing by Jonathan Oatis