Bird Construction buys Stuart Olson in $ 96.5 million contract

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MISSISSAUGA, Ont. – Bird Construction Inc. will acquire Calgary-based construction services company Stuart Olson Inc. in a transaction valued at $ 96.5 million.The combined business would employ approximately 5,000 people in Canada and generate approximately $ 2.5 billion in annual revenues. He also expects cost savings of $ 25 million by the end of 2021.

Under the plan, Bird Construction of Mississauga, Ontario will pay out a combination of $ 30 million in cash and $ 66.5 million of common stock valued at $ 6.32 each.

Bird shares closed Wednesday at $ 6.68, up 14 cents, on the Toronto Stock Exchange. Stuart Olson’s shares lost nearly two-thirds of their value and closed at 32.5 cents, down 56.5 cents.

The bulk of the payment will go to Stuart Olson’s lenders and debentureholders, and only about $ 4 million will go to current Stuart Olson shareholders.

The transaction will be facilitated by Canso Investment Counsel Ltd., which will acquire Bird shares for $ 40 million in cash.



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