UK’s Carillion to acquire Canadian power firm, Rokstad

UK contracting giant Carillion today said it plans to acquire a 60% interest in the Canadian firm Rokstad Power Corporation to boost its prospects in the electric power transmission and distribution market.

With approximately 600 employees, Rokstad is a family-owned company based in Coquitlam, British Columbia. It has recently expanded operations across Canada. 

In a statement today Carillion said it believes the power transmission market is growing.

Carillion has agreed to pay £33m ($51.9m) in instalments, but only if Rokstad hits its financial targets. Carillion will pay £11m in 2014 and £10m in 2015.

The instalments to be paid in 2016 and 2017 will depend on Rokstad’s financial performance but will not exceed £12m.

Carillion has also committed to acquire the remaining 40% interest in Rokstad after five years at a multiple of 4.5 times Rokstad’s 2019 EBITDA, capped at a maximum additional consideration of £42m.

At the transaction date, Rokstad had gross assets of £47.9m. In the 12 month period to 30 June 2014, Rokstad had revenue of £108.5m and pre-tax profit of £13.1m.

Chief Executive Aaron Rokstad and President Bernie Rokstad, who will continue to lead the business following this acquisition.

"Acquiring this interest in the Rokstad Group is an important strategic step in the development of our transmission and distribution business," said Carillion Chief Executive, Richard Howson.

He added: "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."

Photograph: Coquitlam, British Columbia, where Rokstad is headquartered (Greg Salter/Wikimedia Commons)

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