Carillion has agreed to acquire a 60 per cent stake in the trade and assets of Canada’s leading power transmission and distribution services business, Rokstad Power Corporation, enhancing its skills and prospects for growth in servicing the rapidly expanding electric power transmission and distribution market.
Based in British Columbia, Canada, Rokstad provides a full range of transmission and distribution power line services, including specialist live line operations, and has expanded its operations in strategic locations primarily across Canada. With over 600 employees and an extensive fleet of specialist equipment, Rokstad is well positioned to meet the growing demand for electricity and the need to rebuild ageing electric power infrastructure.
The total cash consideration for the acquisition of up to £33 million is dependent on the financial performance of Rokstad, which will be paid in instalments over the period to July 2017.
Under the acquisition agreement, Carillion has also committed to acquire the remaining 40 per cent interest in Rokstad after five years at a multiple of 4.5 times Rokstad’s 2019 EBITDA, capped at a maximum additional consideration of £42 million.
Commenting on the acquisition, Carillion chief executive, Richard Howson, said:
”Acquiring this interest in The Rokstad Group is an important strategic step in the development of our transmission and distribution business. The Rokstad Group has a successful track record in delivering high-quality services to a portfolio of blue chip major utility customers including BC Hydro, SaskPower, AltaLink, Fortis AB, National Grid & Iberdrola and private companies such as SNC Lavalin, Rogers and Imperial Metals.
“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”.
Rokstad is a family owned company, which has been successfully led by chief executive Aaron Rokstad and president Bernie Rokstad. Both will continue to lead the business following the acquisition.