AUS
NZ
UK
CA
USA
IND
Bird Construction Inc. (TSX: BDT) has made a significant stride in its growth trajectory with the announcement of its acquisition of Jacob Bros Construction, a privately-owned civil infrastructure construction business based in Surrey, BC. The definitive share purchase agreement, valued at an estimated aggregate consideration of CAD 135 million, marks a strategic move for Bird, positioning it for enhanced market presence and expanded capabilities in Western Canada. The transaction, subject to regulatory approvals and customary closing conditions, is slated for completion early in the third quarter of 2024.
Jacob Bros brings to the table a wealth of experience and expertise in civil infrastructure construction, bolstering Bird's existing Western Infrastructure business. With a workforce of over 350 personnel and a reputation for excellence, Jacob Bros specializes in a diverse range of projects, including airports, seaports, rail, bridges, earthworks, and energy projects. The company's people-first culture and commitment to innovation have earned it recognition as a top employer in both BC and Canada.
Teri McKibbon, President and CEO of Bird Construction, expressed enthusiasm for the acquisition, highlighting the value that Scott and Todd Jacob, CEOs of Jacob Bros, will bring to the Bird team. McKibbon emphasized the strategic significance of the combined entity, poised to access larger-scale projects and advance Bird's focus on high-demand, higher-margin self-perform sectors.
Scott Jacob echoed McKibbon's sentiments, describing the acquisition as a pivotal moment for Jacob Bros. Joining forces with Bird aligns with Jacob Bros' core values and cultural attributes, paving the way for accelerated growth and expanded capacity in Western Canada's infrastructure landscape. Todd Jacob, COO of Jacob Bros, underscored the opportunity to leverage synergies between the two companies to better serve clients and drive brand growth.
The transaction aligns with Bird's M&A strategy, focusing on culturally aligned businesses with strong cross-sell opportunities. It also positions the combined company to capitalize on key secular tailwinds, including the growing demand for low-carbon and green infrastructure solutions. Furthermore, the acquisition enhances Bird's core Infrastructure vertical, increases its geographic reach, and is anticipated to contribute to margin accretion.
Financially, the transaction is structured to align the interests of Jacob Bros' principals with Bird's shareholders while maintaining balance sheet strength. Following the close, Bird expects the transaction to be accretive to its Adjusted Earnings Per Share by approximately 10% on a full-year basis. With Jacob Bros expected to generate approximately CAD 300 million of revenue and CAD 37 million of Adjusted EBITDA for the full year 2024, supported by a robust backlog and outlook, the transaction sets a solid foundation for future growth.
The completion of the transaction is subject to regulatory approvals, including approval under the Competition Act (Canada) and the Toronto Stock Exchange. Bird will host an investor call on June 11, 2024, to discuss the transaction in detail, providing investors with insights into the strategic rationale and anticipated synergies. Interested participants can register for expedited access to the conference call or join the live webcast for further information.
