Bird buying O’Connell
By Canadian PressNews
July 21, 2011 - Bird Construction says it will pay $77.5 million to acquire H.J. O'Connell, which operates in complementary sectors of the industry in three provinces where Toronto-based Bird doesn't have a presence.
"Bird has been considering various options to diversify its sources of revenue both geographically and through different market segments in order to grow the company in a way that is similar to
our manner of doing business'' Tim Talbott, Bird's president and CEO, said late Wednesday.
"In H.J. O'Connell, we believe we have clearly achieved these objectives and are excited about the growth opportunities that are ahead of the company. We will be able to offer a broader range of
services to particular clients within each of our operating areas, while providing interesting project opportunities for our valuable employees as the organization grows.''
The deal will nearly double the size of Bird's current staff workforce of 700, which services industrial, commercial and institutional markets in parts of Canada. It currently has offices
in Calgary, Edmonton, Halifax, Saint John, N.B., Toronto, Vancouver and Winnipeg. Its Seattle office was closed last year.
H.J. O'Connell, which has 600 craft and staff employees, is involved in heavy construction, civil construction and surface mining. It has operations in Newfoundland and Labrador, Quebec and
Bird will pay the $77.5 million price and $1 million of related transaction expenses with $33.5 million of existing working capital, $30.0 million through equipment financing and $15.0 million through
vendor take-back financing.
The acquisition is expected to be completed by the end of August.
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