Carillion agrees to Canadian acquisition
Construction support services giant Carillion has agreed to acquire a majority stake in a Canadian power transmission and distribution business in a deal potentially worth £33m.
The Wolverhampton-headquartered group will acquire a 60 per cent interest in the trade and assets of Rokstad Power Corporation in a bid to bolder its opportunities in servicing the power transmission market.
The total cash consideration of the acquisition is £33m depending on the financial performance of Rokstad. It will be paid in instalments over the period to July 2017.
Carillion has also agreed to acquire the remaining 40 per cent stake in five years, capped at a maximum conditional consideration of £42m.
Carillion chief executive Richard Howson said: ''Acquiring this interest in The Rokstad Group is an important strategic step in the development of our transmission and distribution business.
"The Rokstad Group has a successful track record in delivering high-quality services to a portfolio of blue chip major utility customers including BC Hydro, SaskPower, AltaLink, Fortis AB, National Grid & Iberdrola and private companies such as SNC Lavalin, Rogers and Imperial Metals.
"Rokstad's knowledge, skills and culture complement our own. This acquisition will therefore create significant new opportunities for us to grow our transmission business and capitalise on the unprecedented pipeline of work in the power transmission and distribution markets through extending our offering to new and existing customers."
Family-run Rokstad, based in British Columbia, will continue to be led by existing chief executive Aaron Rokstad and president Bernie Rokstad.