Under the deal, Coffey will pay C$11M (£5.5M) in cash and £1.1M in shares with another £1M payable "subject to future performance". The latest deal follows Coffey's acquisition late last year of UK firm Webber Associates and Edge Consultants in 2006, thereby strengthening its presence in the UK.
"Shaheen & Peaker is a quality geotechnical and environmental business, similar to what Coffey was like in its earlier years as a private company," said Coffey managing director Roger Olds. "We plan to build Coffey in Canada into a strong national business as we have done in Australia and are progressing in New Zealand and the UK.
"Shaheen & Peaker's head office is in Toronto and it has seven branch offices in the Ontario and Calgary regions. This strong presence will also provide us with the opportunity from which our mining businesses can set up permanently," said Olds.
Shaheen & Peaker president Shaheen Ahmad said: "We will now have the size and credibility to compete with the biggest firms in Canada."