International infrastructure services consultancy, Cardno Limited (CDD) announced that it has agreed to acquire ATC Associates Inc., a Louisiana, U.S.A. based environmental services firm. ATC Associates is a 1600 person consulting firm with specialist expertise in environmental consulting and services, building sciences, geotechnical engineering and construction materials testing (CMT). The acquisition is expected to contribute approximately US$130 million in revenue and US$16 million in EBITDA over the next 12 months.
Cardno will pay US$106 million for the purchase of ATC which includes payment of US$101 million on settlement and a US$5 million holdback to be paid in 18 month’s. The transaction is expected to be effective 1 March 2012. The acquisition of ATC will be funded through a A$45 million Placement combined with a 1 for 9 Renounceable Rights Issue to existing shareholders which will raise an additional A$66 million approximately. The transaction is subject to customary closing conditions including approval of the Committee of Foreign Investment in the United States, due to a small amount of security level work for the U.S.A.
Cardno Managing Director, Andrew Buckley commented that in line with Cardno’s proven strategy, ATC’s key management will remain active in the company, which will be known as Cardno ATC. Mr Buckley said the addition of Cardno ATC will further strengthen Cardno’s exposure to the U.S.A. environmental and natural resources management market and is highly complementary to Cardno’s existing businesses in the U.S.A. He further noted that this cements Cardno’s position as one of the largest environmental consulting firms in the U.S.A. Mr Buckley added that ATC will provide Cardno with broader access to key U.S.A. clients such as oil, gas and energy companies and major U.S.A. contractors and retail groups. Integral to ATC’s core strength and reputation has been the company’s ability to successfully deliver a broad range of environmental services to major clients through multi-year master service agreements.
Cardno is an integrated professional services provider, delivering the specialist expertise necessary to create and improve the physical and social infrastructure that underpins communities around the world. Cardno’s team includes leading professionals who plan, design, manage and deliver sustainable projects or community programs.
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