Bird to acquire B.C. construction firm Jacob Bros for $135 million
(UI) — Bird Construction Inc. is set to acquire Jacob Bros Construction, a B.C.-based civil infrastructure contractor, for $135 million. The deal is expected to close early in the third quarter of 2024, pending regulatory approvals and other conditions.
Jacob Bros, headquartered in Surrey, British Columbia, is known for its work on airports, seaports, rail, bridges, earthworks, energy projects, and utilities. With over 350 employees, the company will join Bird, with CEO Scott Jacob and COO Todd Jacob leading the combined Western Infrastructure business.
Bird CEO Teri McKibbon praised the acquisition, calling it a significant milestone. “Jacob Bros brings a strong market reputation and a skilled team. This deal positions us to access larger projects and expand career opportunities for employees,” McKibbon said.
Scott Jacob, Jacob Bros CEO, expressed enthusiasm for the merger. “Joining Bird Construction, one of Canada’s oldest and most respected brands, aligns with our core values and cultural attributes,” he said. Todd Jacob, COO, added, “We are excited about the synergies and the opportunity to grow our brand.”
The acquisition aligns with Bird’s strategy to enhance its civil infrastructure capabilities and expand its national footprint. The combined company will leverage Jacob Bros' expertise in self-perform and special projects, aiming for profitable growth.
The $135 million deal includes $33.8 million in Bird shares, $97.2 million in cash, and $4 million in assumed equipment debt. Bird has also amended its credit facility to support the acquisition, maintaining its low leverage practice.
Jacob Bros is expected to generate $300 million in revenue and $37 million in Adjusted EBITDA for 2024, with an existing backlog of $350 million supporting further growth.
The deal awaits approval under the Competition Act (Canada) and the Toronto Stock Exchange.
Related News
From Archive
Comments