Rokstad provides a full range of transmission and distribution power line services, including specialist live-line operations. It has expanded its operations in strategic locations primarily across Canada and has more than 600 employees and an extensive fleet of specialist equipment.
The family-owned company鈥檚 chief executive Aaron Rokstad and president Bernie Rokstad will continue to lead the business following the acquisition.
The total cash consideration for the acquisition of up to 拢33m is dependent on the financial performance of Rokstad. The money will be paid in instalments over the period to July 2017, with payments of 拢11m and 拢10m in 2014 and 2015, respectively.聽 The instalments to be paid in 2016 and 2017, which are dependent on financial performance, will be capped at a combined total of 拢12m.
Under the acquisition agreement, Carillion has also committed to acquire the remaining 40% 聽interest in Rokstad after five years at a multiple of 4.5 times Rokstad's 2019 earnings before interest, taxes, depreciation, and amortisation. The price is capped at a maximum additional consideration of 拢42m.
At the transaction date, Rokstad had gross assets of 拢47.9m.聽 In the 12 month period to 30 June 2014, Rokstad had revenue of 拢108.5m and pre-tax profit of 拢13.1m.聽 Given Carillion will have a 60% interest in Rokstad, all 拢21m or so of Rokstad's net debt will be consolidated into Carillion's balance sheet.
Carillion chief executive Richard Howson said: ''Acquiring this interest in The Rokstad Group is an important strategic step in the development of our transmission and distribution business. The Rokstad Group has a successful track record in delivering high-quality services to a portfolio of blue chip major utility customers including BC Hydro, SaskPower, AltaLink, Fortis AB, National Grid & Iberdrola and private companies such as SNC Lavalin, Rogers and Imperial Metals.聽
"Rokstad's knowledge, skills and culture complement our own. This acquisition will therefore create significant new opportunities for us to grow our transmission business and capitalise on the unprecedented pipeline of work in the power transmission and distribution markets through extending our offering to new and existing customers."
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