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Stantec to acquire ZETCON Engineering, a leading German infrastructure firm

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Rhea-AI Summary
Stantec (TSX, NYSE: STN) to Acquire ZETCON Engineering, a 645-person engineering firm based in Bochum, Germany. The acquisition aims to strengthen Stantec's presence in Germany's infrastructure market, particularly in bridge certification, tunnels, roads, and rail infrastructure. This move aligns with Germany's significant infrastructure upgrade plans and transition to sustainable energy sources.
Positive
  • Stantec's acquisition of ZETCON provides a significant foothold in Germany, a country with massive infrastructure needs, setting the company up for long-term growth in the region.
  • The acquisition enables Stantec to expand its range of services, capacity to work on larger projects, and partner with global expertise, offering potential for long-term organic growth.
  • Germany's construction market, the largest in Europe, presents ongoing high demand for infrastructure renovation, aligning with ZETCON's focus areas and providing growth opportunities for Stantec.
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  • None.

EDMONTON, Alberta and NEW YORK and BOCHUM, Germany, Nov. 14, 2023 (GLOBE NEWSWIRE) -- TSX, NYSE: STN

Stantec, a global leader in sustainable design and engineering, has signed an agreement to acquire ZETCON Engineering, a 645-person engineering firm headquartered in Bochum, Germany. Founded in 1973, ZETCON has built a reputation as an industry leader in infrastructure planning, inspection, project management, and construction management. The terms of the transaction are not disclosed.

The acquisition of ZETCON gives Stantec a strong platform focused on infrastructure. ZETCON has a total of 13 offices covering all major German metropolitan areas. The firm has extensive industry expertise in bridge certification and assessment, project and construction management of tunnels, roads, and rail infrastructure, as well as building condition assessments, improvements, and certifications. ZETCON’s national presence and expertise in the German market, combined with Stantec's global knowledge and capabilities, will provide the opportunity to further diversify the business and grow in other sectors over time. Stantec’s global expertise in water and power engineering, buildings, advanced manufacturing, and environmental services offer potential for growth in the German market.

The German construction market is the largest in Europe at EUR427 billion (CAD$629.9 billion) in 2022. There is ongoing high demand for the renovation of German infrastructure–especially bridges, tunnels, railway construction, and power grids, all focus areas of ZETCON. Germany is planning significant upgrades to aging infrastructure while advancing its transition to sustainable energy sources. For example, the Federal Transportation Route Plan 2030 outlines a EUR270 billion (CAD$398.3 billion) investment in roads, railways, and waterways, while the German transmission grid is expected to require a EUR240 billion (CAD$354 billion) investment leading up to 2045.

“ZETCON gives us a significant foothold in Germany, a large economy with massive infrastructure needs over the coming years,” said Gord Johnston, president and chief executive officer, Stantec. “Expanding our presence in Europe has long been an ambition for Stantec, and this acquisition will set us up for long-term growth in the region.”

“Stantec is a renowned global engineering firm that brings the clout to help us grow in a fragmented German engineering market,” said Caspar Tillmann, chief executive officer, ZETCON. “Joining Stantec will expand the range of services we can offer our clients, give us the capacity to work on larger, more complex projects, and give our employees the opportunity to partner with best-in-class global expertise.”

VETCON Engineering Project Experience

ZETCON’s portfolio of experience focuses on infrastructure projects for public clients such as Deutsche Bahn, federal real estate agencies, public utilities, airports, and network transmission operators. More than 95 percent of the firm’s business resides with public sector clients.

Projects in ZETCON’s portfolio include

  • Construction supervision for the EUR750 million (CAD$1.1 billion) light rail tunnel expansion in the city of Karlsruhe. ZETCON is overseeing structural engineering work as well as the installation of building and railway operations technology through the inner-city tunnel and seven underground stations.
  • Construction supervision for the EUR700 million (CAD$1 billion) Wehrhahn Line, a new double track light rail tunnel through the heart of Düsseldorf. The 3.4-kilometre line includes six underground and two aboveground stations and required a high degree of coordination within the city’s dense downtown commercial district.
  • Project management for the EUR700 million (CAD$1 billion) Südlink project, a 700-kilometre underground transmission line that will enable the German energy transition, connecting North Sea wind power to the south of Germany. ZETCON oversaw the work of five specialized companies mapping the 1,000-metre-wide corridor, while managing scheduling and cost control, risk management, and contract management.
  • Independent engineer for the EUR600 million (CAD$885 million) expansion of Highway A6. Delivered under a public-private partnership model, the project includes expanding the number of lanes from four to six, new construction of a 1,300-metre bridge, replacement of 36 bridges, and upgrades to eight bridges.

The acquisition of ZETCON is consistent with Stantec’s strategic effort to expand in key global markets, creating a platform for long-term organic growth.

The acquisition is expected to close in January 2024.

About Stantec
Communities are fundamental. Whether around the corner or across the globe, they provide a foundation, a sense of place and of belonging. That's why at Stantec, we always design with community in mind.

We're designers, engineers, scientists, and project managers, innovating together at the intersection of community, creativity, and client relationships. Balancing these priorities results in projects that advance the quality of life in communities across the globe.

Stantec trades on the TSX and the NYSE under the symbol STN.

Media Contact                       
Danny Craig                       
Stantec Media Relations           
Ph: (949) 923-6085                  
danny.craig@stantec.com

Investor Contact:
Jess Nieukerk
Stantec Investor Relations
Ph: (403) 569-5389
jess.nieukerk@stantec.com

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FAQ

What is Stantec acquiring?

Stantec is acquiring ZETCON Engineering, a 645-person engineering firm based in Bochum, Germany.

What are ZETCON's expertise areas?

ZETCON specializes in bridge certification, tunnels, roads, rail infrastructure, building condition assessments, improvements, and certifications.

What is the significance of the German construction market?

The German construction market is the largest in Europe, with ongoing high demand for infrastructure renovation, aligning with ZETCON's focus areas.

What are the major infrastructure upgrade plans in Germany?

Germany is planning significant upgrades to aging infrastructure and transitioning to sustainable energy sources, involving substantial investments in roads, railways, and waterways, as well as the transmission grid.

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we’re active members of the communities we serve. that’s why at stantec, we always design with community in mind. the stantec community unites more than 15,000 specialists working in over 250 locations. we collaborate across disciplines and industries to make buildings, infrastructure, and energy and resource projects happen. our work—professional consulting in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics—begins at the intersection of community, creativity, and client relationships. since 1954, our local strength, knowledge, and relationships, coupled with our world-class expertise, have allowed us to go anywhere to meet our clients’ needs in more creative and personalized ways. with a long-term commitment to the people and places we serve, stantec has the unique ability to connect to projects on a personal level and advance the quality of life in communities across the glo