TORONTO, March 29 (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.