Global engineer buys Perth firm

Canadian engineering giant Stantec has announced its fifth Australian acquisition in recent years with the purchase of Perth-based Engenium.

Stantec has signed a letter of intent with Engenium with the deal set to close later this month.

The planned acquisition will substantially boost Stantec’s exposure to the resources and renewable energy sectors in Western Australia.

It also adds 170 staff to Stantec’s Australian presence.

In WA, the combined firm will be the 10^th largest engineering firm (based on number of engineers based in WA), according to Business News` Data & Insights.

The Engenium deal comes just weeks after Stantec closed the purchase of transport planning firm GTA Consultants, which has 135 staff across Australia, including a handful in Perth.

Stantec has approximately 1,100 employees in Australia, with about half of those coming through the purchase of Perth-based Wood & Grieve Engineers in 2019.

The TSX-listed company has not announced the terms of its acquisitions but is likely to include details in its next annual report.

For instance, it belatedly disclosed it paid C$135.8 million ($147 million) for Wood & Grieve.

Engenium was established in 2003.

It achieved great success in its early years through its Calibre Engenium joint venture, which won contracts on many of the big iron ore expansion projects in the Pilbara between 2005 and 2010.

It was owned by ASX-listed Resource Development Group up to 2015, when managing director Wayne Peel led a management buyout.

Engenium’s most recent contract, announced last month, was to provide project management services to BCI Minerals’ $780 million Mardie Salt and Potash Project.

It has also worked with Canada’s TransAlta Corporation on the Goldfields solar projects, which will provide power to BHP Nickel West’s Mount Keith and Leinster mining operations.

In addition, it has worked with Alinta Energy on the Chichester solar/gas hybrid energy project, which will supply power to Fortescue Metals Group.

Engenium also has multi-year framework agreements with major mining companies.

It has offices in Perth, Karratha, Newcastle, and Brisbane.

“Joining Stantec enhances our ability to service larger projects, with the depth of a global firm that operates on all seven continents,” said Mr Peel.

“Stantec’s values align with our commitment to sustainability leadership, and to putting people first. We are thrilled to join their global community.”

Stantec chief executive Gord Johnston said Engenium would add depth and expertise to its existing mining business.

“Engenium’s experience in mine development, mineral processing, and renewable energy operations builds on our track record of sustainable project delivery and support of energy transition,” he said.

Stantec has 22,000 team members in 400 offices worldwide.

As well as Wood & Grieve Engineers, GTA Consultants and Engenium, it has bought MWH Global and Traffic Design Group in Australia in the past five years.

Engenium was advised by HopgoodGanim Lawyers, HLB Mann Judd and US-based AEC Advisors.