Bird Bolsters Capabilities, Capacity, and Recurring Revenue With Agreement to Acquire Leading Alberta Electrical Service Provider

MISSISSAUGA, Ontario, Jan. 18, 2024 (GLOBE NEWSWIRE) -- Bird Construction Inc. (TSX: BDT) announced today that it has acquired the assets of NorCan Electric Inc. (“NorCan”) for a total consideration of $11 million. The transaction is expected to be accretive, enhancing earnings per share by $0.04 in 2024. All transaction agreements have been completed, and the transaction is effective today.

NorCan is a leading electrical and instrumentation contractor with up to 450 electricians providing maintenance turnaround and sustaining capital services in the Regional Municipality of Wood Buffalo in Alberta. During their 25 years of service in the region, they have developed deep, long-term relationships based on their strong service delivery and safety program. Since 2018, NorCan has operated through an Indigenous partnership, the NorCan/Infinity Limited Partnership, with Infinity Métis Corporation.

Aligned with Bird’s strategy to seek out tuck-in acquisitions with strong operational and cultural fit, NorCan aligns well with Bird’s maintenance, repair, and operations (“MRO”) team, operating under its wholly owned Stuart Olson subsidiary. The acquisition advances Bird’s growth strategy with electrical contracting capabilities, contributing to the Company’s recurring MSA revenue programs through a recently renewed multi-year MSA contract for electrical and instrumentation services with a strategic, long-term NorCan client. The acquisition drives growth in Bird’s self-perform power distribution capabilities, complementing Bird’s existing high voltage capabilities, in addition to expanding electrical and instrumentation capabilities on large, complex industrial facilities in Canada and the United States.

Bird’s MRO team is a top-tier industrial services organization, and, like NorCan, they share a commitment to leading safety programs and outstanding client service. Together, these strengths are expected to bolster operational efficiencies, expand capacity, and generate cross-selling opportunities with major clients in the region. The transaction also provides the opportunity for geographic diversification by opening the door for Bird to cross-sell its services to existing NorCan client relationships in the United States.