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 cross-selling and self-perform capabilities.

• 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 supports seamless integration and future growth.

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

• Aligns with M&A strategy targeting high-performing, culturally aligned, complementary businesses.

Financial terms and conditions

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

• FRPD will be acquired on a cash-free, debt-free basis.

• The transaction reflects an implied purchase multiple of 4.1x projected 2025 adjusted EBITDA.

• FRPD expected to generate $160M in revenue and $20M in Adjusted EBITDA annually.

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

Synergies and expected cost savings

• Revenue synergies expected from cross-selling and partnership opportunities, enabling pursuit of larger, more complex projects.

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

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

• Strong backlog and pipeline, plus long-term contracts, expected to support further Adjusted EBITDA growth.