Carillion has agreed to acquire a Canadian power line services supplier.
The Wolverhampton-based contractor will buy an initial 60% stake in the trade and assets of Rokstad Power Corporation in a deal worth up to £33M.
It will then purchase the remaining 40% in five years’ time for a fee equivalent to 4.5 times the target company’s 2019 Ebitda, up to a limit of £42M.
Carillion said the deal would boost its prospects for growth in the expanding electric power transmission and distribution market.
Rokstad, which is based in British Columbia, has more than 600 employees and a fleet of specialist equipment.
Carillion chief executive Richard Howson said: “Rokstad’s knowledge, skills and culture complement our own.
“This acquisition will therefore create significant new opportunities for us to grow our transmission business and capitalise on the unprecedented pipeline of work in the power transmission and distribution markets through extending our offering to new and existing customers.
“We look forward to working with the Rokstad senior management team and to an exciting future as we build on Rokstad’s success.”