Edmonton-based architecture and engineering consultant Stantec says it has signed an agreement to sale its construction division, MWH Constructors, to funds managed by Oaktree Capital Management, L.P.
The sale includes MWH Constructors’ UK and US divisions and Slayden Constructors, Inc. MWH Constructors joined Stantec through the MWH acquisition in 2016. The sale is expected to close before the end of the year.
“MWH Constructors has growth opportunities in the United Kingdom and the United States, and we believe this divestiture will better allow them to invest in and pursue growth while continuing to serve their clients, Gord Johnston, Stantec’s president and chief executive officer, said in a statement.
Stantec says the divestiture concludes the strategic review of construction services it had announced in April. The strategic review set out to determine an option that would optimize the value of MWH Constructors and provide the best prospects for employees, clients, and shareholders.
“We are excited to join Oaktree’s construction portfolio focused on project delivery,” says Blair Lavoie, president of MWH Constructors and chief of global operations. “This is a positive step in the evolution of our company, and we look forward to having a partner like Oaktree with strong financial resources and a desire to invest in our future as we continue to be the leading global project delivery company in the water sector. In the US, we will stay with our great brands of Slayden and MWH Constructors, and in the UK, we will return to MWH Treatment.”
With the pending divestiture of MWH Constructors and the 2017 divestiture of Innovyze, Stantec says it will continue to focus on its core consulting services business globally. Stantec has announced eight strategic acquisitions so far in 2018, the company says.
Perella Weinberg Partners L.P. served as exclusive financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Stantec.