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LISTING: TORONTO STOCK EXCHANGE
TORONTO, Jan. 17, 2013 /CNW/ - Bird Construction Inc. ("Bird") (TSX: BDT)
today announced that it has completed its previously announced acquisition of
all of the outstanding shares of Nason Contracting Group Ltd. ("Nason"). The
total cost of the acquisition, including transaction expenses, will be
approximately $13.3 million.
The $12.8 million purchase price and related transaction expenses of $0.5
million were funded with approximately $8.3 million of existing working
capital and by the issuance from treasury of 363,007 common shares of Bird,
valued at $5.0 million based on the volume-weighted average trading price of
Bird's common shares on the Toronto Stock Exchange for the 10-trading day
period ended January 16, 2013.
Nason is a recognized leader in the construction of water and wastewater
facilities in western Canada. Nason's revenue for their previous four full
fiscal years averaged $37.0 million. The company has a 40-year track record
of successful construction projects throughout Alberta, British Columbia,
Saskatchewan and the Yukon and Northwest Territories. The company's head
office, shops and yard are located in St. Albert, Alberta.
Nason performs the majority of its work with its own forces and has particular
strength in the execution of mechanical, electrical and instrumentation
work. The company has a highly-skilled staff of over 65 professional and
craft employees. Nason's management team members will remain as employees
and will assist Bird in the management of Nason's ongoing operations.
"The completion of this transaction continues Bird's ongoing focus to grow the
company by looking for strategic opportunities to complement our current
market scope," commented Tim Talbott, President and C.E.O. of Bird. "The
addition of Nason's strong contracting capabilities in their area of
specialization and their qualified construction professionals to the Bird
organization will enhance the value that Bird provides to its shareholders."
Nason's and Bird's businesses are complementary. Nason's primary expertise is
in the mechanical, electrical and instrumentation aspects of water and
wastewater projects, whereas Bird's expertise lies in the general contracting
of such projects and in the self-performance of the civil and underground
portions of the projects. Bird's general contracting and civil construction
expertise will allow Nason to expand their operations. As well, Bird's
expertise in design-build projects will provide further growth opportunities
for Nason, particularly as it relates to the public-private partnership
delivery method which is a growth area in the water and wastewater market.
Further, Nason's business is focused on the public market. Bird's contacts
and expertise in the industrial market will open up new opportunities for both
companies. Nason has extensive experience working on remote job sites which
will be a particular advantage servicing the resource market.
For a synopsis of the transaction, please refer to Bird's website at
This press release contains forward-looking statements that involve a number
of risks and uncertainties because they relate to events and depend on
circumstances that will occur in the future. Many factors could cause actual
results and developments to differ materially from those expressed or implied
by these forward-looking statements.
T.J. Talbott, President & C.E.O. or S.R. Entwistle, C.F.O. Bird Construction
Inc. 5403 Eglinton Avenue West Toronto, ON M9C 5K6 Phone: (416) 620-7122
Fax: (416) 620-1516
SOURCE: Bird Construction Inc.
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-0- Jan/17/2013 22:02 GMT
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