SNC-Lavalin in Colombian engineering acquisition

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13 January 2011

SNC-Lavalin has acquired Colombian engineering company Itansuca Proyectos de Ingenieria for an estimated US$ 50 to US$ 60 million.

The price of the deal was undisclosed, but SNC stock analyst Pierre Lacroix of Desjardins Securities calculated that the Canadian construction company had likely paid around US$ 50,000 to US$ 60,000 per head for the 1000-employee consultant.

Bogota-based Itansuca Proyectos de Ingenieria offers energy consulting, project management, electromechanical installation, design and supervision services. It has 21 offices around Columbia and globally.

The deal is the latest move by SNC to deepen its footprint in Latin American markets.

In 2007 and 2009 the company acquired Brazilian engineering firms Minerconsult and Marte respectively, in separate deals worth an aggregate of approximately US$ 90 to US$ 110 million.

And in October 2010, SNC formed a joint venture with Brazil's Alusa Engenharia to build infrastructure, roads and airports ahead of the 2014 FIFA World Cup and the 2016 Olympics in Rio de Janeiro.

Commenting on the latest acquisition, SNC executive vice president Riadh Ben Aïssa said, "We see enormous potential to grow our multi-product portfolio in Latin America and maximise our synergies in the fields of energy, infrastructure, oil and gas, and mining and metallurgy".

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