Bird Construction Inc. will acquire Jacob Bros Construction for an estimated $135 million. The transaction is expected to be completed early in the third quarter of 2024, pending regulatory approval.
Headquartered in Surrey, British Columbia, Jacob Bros is a privately-owned civil infrastructure construction business with self-perform capability, serving public and private clients across the region with a workforce of over 350 salaried, hourly, and craft personnel. Scott Jacob, CEO of Jacob Bros, and Todd Jacob, COO of Jacob Bros, will join Bird to lead the combination of Bird's western infrastructure business and their existing business. Jacob Bros specializes in civil infrastructure construction across a wide array of projects, such as airports, seaports, rail, bridges and structures, earthworks, energy projects, and utilities.
"We are really pleased that Scott and Todd Jacob will be bringing their comprehensive experience to the Bird team. The acquisition of Jacob Bros, a full-service infrastructure provider in B.C., represents a significant milestone in the evolution of our business, establishing a broader and more diversified operation. The company brings a strong market reputation, highly skilled team, and proven track record for delivering complex projects to sophisticated, long-term clients," stated Teri McKibbon, president and CEO of Bird. "The combined company will have a greater platform from which it will be able to access larger-scale projects and expand career opportunities for employees. The acquisition will enable Bird to advance our strategic focus on complex work in high-demand, higher-margin self-perform sectors, which we expect will contribute to continued margin enhancement."
Highlights of the acquisition
Positions the combined company to capitalize on opportunities related to electrification, the growing demand for low-carbon and green infrastructure solutions, and transportation infrastructure requirements.
Jacob Bros augments the strong Bird team with an experienced leadership team and skilled workforce with the ability to execute civil infrastructure and special projects of varying size, complexity, and scope.
Significantly increases revenue generated by infrastructure projects, which advances Bird's strategy to balance its portfolio across industrial, buildings, and infrastructure segments.
Financial highlights
1.49 million Bird common shares issued to the principals of Jacob Bros with a value of $33.8 million, based on the volume-weighted average trading price of the Bird common shares on the Toronto Stock Exchange for the ten trading days prior to June 10; approximately $97.2 million of cash, funded through existing cash on hand as well as short-term and long-term debt under the company's credit facilities; and an estimated $4.0 million of assumed equipment debt.
