Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, August 7, 2020

Article Excerpt

BIRD CONSTRUCTION INC., $6.77, symbol BDT on Toronto, is a Toronto-based construction company that provides contracting services to various sectors including commercial, institutional, retail, residential, water, energy, and civil. It operates in all Canadian provinces. On July 29, 2020, Bird announced a new deal to acquire Calgary-based Stuart Olson Inc. (symbol SOX on Toronto) for $96.5 million. The company will pay $30 million in cash and issue 10.52 million shares of its stock. That equals $66.5 million. Bird’s revolving credit facility will provide the cash portion of the deal. The company believes that merging with Stuart Olson gives its operations much-needed scale, with diversification across different services, end-markets, and geographical regions. The combined business will have more than 5,000 employees across the country with revenue of $2.5 billion and an order backlog of $3.0 billion. That puts it in a better position to capitalize on Canadian infrastructure projects. By the end of 2021, Bird expects to generate $25 million in annual savings. The…

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