Bird Construction Inc. says it has acquired Dagmar Construction Inc., an Ontario-based construction company with extensive experience across key civil infrastructure sub-sectors including road, bridge, rail, sewer and water, and commercial-institutional sites.
The Dagmar management team will continue to operate the business with the support of Bird.
Over the past 80 years, Dagmar has earned a strong reputation in the construction industry for solid execution, dependable operations, and a safety-oriented culture with a focus on complex and specialized civil infrastructure projects for both private and public owners across Ontario.
Bird says Dagmar’s capabilities and service offerings will improve its competitive position nationally and enable access to the Ontario market, increased diversification in a growing end-market with a strong outlook bolstered by government infrastructure commitments.
“This acquisition provides a platform for Bird, in the largest civil infrastructure market in Canada, to combine our national civil resources with Dagmar’s extensive experience in Ontario, and it will be a catalyst for long term growth in the infrastructure sector. It is consistent with our strategy to diversify across both geography and market segments,” said Teri McKibbon, president and CEO of Bird.
“Through the combination of our two, highly respected businesses, Bird will be positioned to deliver a robust suite of services and leverage strong cross-selling opportunities with major clients across Canada. We are confident in the opportunities this transaction creates for our employees and our clients, and we expect long-term value creation for all of our stakeholders.”
The purchase price of the transaction is $32 million, before any adjustments for working capital. Bird intends to finance 80% of the transaction through debt with balance coming from Bird treasury shares issued to the seven principal vendor shareholders. The consideration mix aligns the interests of Dagmar’s principals with Bird’s shareholders and maintains Bird’s conservative leverage and strong liquidity profile.
“I am very pleased to become an important part of Bird’s future, enabled through our well-aligned cultures and company values. In addition to expanding services to our existing clients, this transaction will open the door to larger scale, more diverse work than currently possible,” said Denis Bigioni, president of Dagmar.
“The opportunities that our collective teams will now be able to access with Bird’s national resources and Dagmar’s 80 years of history in the Ontario market, will enhance value for all stakeholders.”