Canada’s Stantec said Thursday it plans to buy Irvine engineering consultant Keith Cos. for about $175 million.
Edmonton, Alberta-based Stantec plans to merge Keith into a U.S. unit. The publicly traded company plans to list on a U.S. stock exchange.
Keith shareholders are set to receive about $22 per share in the deal. They can receive cash, Stantec shares or a combination of cash and Stantec shares. Keith’s market value was $135 million before trading was halted Thursday.
Stantec said it wanted to boost its U.S. presence. The deal includes Keith’s 850 workers and 16 offices, including 12 in Southern California.
Stantec provides professional design and consulting services in planning, engineering, architecture, surveying and project management. It has more than 4,000 employees in 50 North American facilities.
The acquisition needs approval from Keith shareholders and regulators. It’s set to close in the third quarter.
Keith Chairman and Chief Executive Aram Keith is set to become a director of Stantec when the deal is wrapped up.
The company has worked on roads, water systems and homes in Orange County and elsewhere in the Southland. Keith does land planning, mapping, surveying, civil and industrial engineering, site acquisition, permit processing and project management.
It had sales of $105 million last year. Stantec’s sales were about $400 million in U.S. dollars.
