Stantec Closes MWH Global Buy, Expands In Water Markets

Stantec Inc. (TO:STN) , a leading engineering firm based in Canada, recently completed the acquisition of MWH Global, Inc. ("MWH"). This acquisition will help Stantec expand its footprint as a global leader in water resources infrastructure. The deal, initiated on Mar 29, 2016, was completed on May 6, 2016.

Headquartered in Broomfield, CO, MWH is a global water and natural resources firm, with a vast employee base worldwide, having around 187 offices across 26 countries. The transaction will help Stantec expand its presence across the United Kingdom, Australia, New Zealand, South and Central America, Europe and the Middle East.

The acquisition will also position Stantec as a top-tier design firm in the global water market. The technical expertise and band recognition of both the firms will help Stantec win contracts across the world.

MWH has had a long industrial history dating back nearly 200 years, providing technological know-how to various noteworthy water and natural resource infrastructure projects across the globe. Some such projects include the Panama Canal Third Set of Locks Project, the Thames Water Asset Management Programme 6 in the United Kingdom and the Austin Water Treatment Plant No. 4 in Texas.

In addition to a highly trained global staff network, MWH offers new service groups to Stantec, which include Engineering and Technical Services. These will help improve the company’s water-related design services – a key factor for its hydro-power, oil & gas, mining, and industrial clients.

This acquisition will enable Stantec to expand its Energy & Resources portfolio by cross-selling its engineering services and providing clients with a broader and an enhanced service offering globally.

Additionally, MWH’s construction business is likely to boost Stantec's existing consulting services business, by allowing it to organize and execute design-build projects with other construction associates in both water markets and other sectors.

Currently, Stantec and MWH are working jointly to develop a combination strategy that identifies and leverages the firms' collective strengths. Stantec is expected to have approximately 22,000 employees spread across over 400 offices located across the world.

Stantec carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include CBIZ, Inc. (NYSE:CBZ) , CEB Inc. (NYSE:CEB) and Accenture plc (NYSE:ACN) . All three carry a Zacks Rank #2(Buy).