Carillion plc, a U.K. construction and services provider, was selected as preferred bidder for a 12-year contract worth more than 100 million pounds ($159 million) to maintain Canadian highways.
Carillion will provide routine inspection, maintenance and minor repairs for more than 1,000 kilometers (621 miles) of highway in Ontario, the company said in a statement today.
The Wolverhampton, England-based company, which employs about 40,000 people and is offering maintenance services for the rail, oil and telecommunication industries, has been expanding in Canada to make up for a construction slump in its U.K. home market. The company’s share of revenue from the U.K. dropped to 78 percent of sales last year from more than 90 percent five years earlier, according to data compiled by Bloomberg.
“Over the last 18 months, we have won long-term highways maintenance contracts in Ontario and Alberta worth over 720 million pounds, which is making a significant contribution to organic growth in our support services activities in Canada,” Carillion Chief Executive Officer Richard Howson said.
Carillion gained as much as 1 percent to 324 pence in London trading and was up 0.8 percent as of 9:02 a.m., valuing the company at 1.4 billion pounds. Before today, the stock had risen 1.2 percent this year while the FTSE 250 index surged 22 percent.