Bird Construction (BDT) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of FRPD expands national infrastructure presence, adding marine construction, land foundation, and dredging expertise, and enhances self-perform capabilities and cross-selling opportunities.

• Aligns with strategy to diversify revenue, enhance full-service offerings, and balance the portfolio across Industrial, Buildings, and Infrastructure.

• Provides access to a highly experienced workforce, strong client relationships, and cultural alignment, supporting seamless integration and long-term growth.

• Positions the company to capitalize on high-demand sectors like port expansion, transportation, energy, and nation-building projects across Canada.

• Addresses the need for specialized services in response to significant federal infrastructure investments and supports the goal of achieving a balanced revenue mix by 2027.

Financial terms and conditions

• Aggregate consideration of CAD 82.3 million, funded through a new term debt facility and supported by a new $215.6–$216 million term loan.

• FRPD acquired on a cash-free, debt-free basis; transaction expected to close early Q4 2025, subject to regulatory approvals.

• Implied purchase multiple of 4.1x projected 2025 adjusted EBITDA.

• Pro forma annual revenue of approximately CAD 160 million and adjusted EBITDA of CAD 20 million.

• Transaction expected to be accretive to Adjusted EPS by approximately 7% on a full-year basis.

Synergies and expected cost savings

• Revenue synergies expected from cross-selling, joint pursuit of larger projects, and expanded client base.

• Cost synergies anticipated in areas like insurance and procurement, leveraging purchasing power.

• Margin expansion expected through improved project mix, recurring work programs, and higher-margin self-perform capabilities.

• Anticipated 7% accretion to Adjusted EPS, with further growth potential from strong backlog and long-term contracts.