Continuing is recent acquisition spree, North American design and consulting giant Stantec Inc. (STN) signed a letter of intent to acquire Santa Barbara-based Penfield & Smith, a civil engineering and land planning firm. The acquisition will strengthen Stantec’s presence along the Central Coast of California.
The company also recently signed a letter of intent to acquire ADD Inc., an architectural firm based in Boston, to reinforce its East Coast operations.
With local offices in Santa Barbara, Camarillo, Santa Maria and Lancaster, Penfield & Smith boasts a sizeable portfolio of public and private sector clients. The transaction is expected to conclude in October. Other terms of the deal have been kept private.
The deal is set to fortify Stantec’s existing infrastructure capabilities. Penfield & Smith will complement Stantec’s operations in Los Angeles and Ventura Counties as well.
Stantec intends to capitalize on the lucrative growth opportunities available along the Central Coast of California. In this regard, the company decided to acquire Penfield & Smith to strengthen its community development presence in the region. Penfield & Smith’s existing foothold in the area will provide Stantec a platform to leverage the growth prospects in this area.
While Stantec will gain from Penfield & Smith’s local expertise, the latter stands to benefit from Stantec’s global operational footprint and access to new markets. Also, Stantec’s scale of operations will make Penfield & Smith more resilient to market fluctuations.
Stantec currently has a Zacks Rank #3 (Hold). Other better-ranked stocks in the consulting industry that are worth a look include Gartner Inc. (IT), CRA International Inc. (CRAI) and FTI Consulting, Inc. (FCN). While Gartner and CRA sport a Zacks Rank #1 (Strong Buy), FTI carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment