AtkinsRéalis to strengthen U.S. market position with acquisition of David Evans Enterprises

AtkinsRéalis Group Inc. (TSX: ATRL), a global engineering and nuclear services firm, has announced a strategic move to expand its U.S. infrastructure footprint by acquiring a 70% stake in David Evans Enterprises, Inc. in a transaction valued at $300 million in cash. This acquisition marks a significant step in AtkinsRéalis’ U.S. expansion strategy, aligning with its long-term plan to strengthen its transportation infrastructure projects and engineering services in key markets across the Western United States.

David Evans Enterprises, the parent company of David Evans and Associates, Inc., is a highly regarded employee-owned firm specializing in transportation, power and renewables, land development, and environmental services. The deal, expected to close in the first half of 2025, is subject to customary closing conditions and shareholder approvals.

What Does the Acquisition Mean for AtkinsRéalis’ U.S. Expansion?

By acquiring a majority stake in David Evans, AtkinsRéalis significantly enhances its geographic reach, technical expertise, and infrastructure capabilities in the United States. With 34 offices in 10 states and a workforce of approximately 1,250 employees, David Evans has built a strong reputation for engineering excellence and sustainable infrastructure solutions. The acquisition enables AtkinsRéalis to expand its market share in the U.S. transportation infrastructure sector, a key area of focus for future growth.

AtkinsRéalis President and Chief Executive Officer Ian Edwards emphasized that the deal supports the company’s Land and Expand strategy, which focuses on strengthening its regional presence in high-growth markets. He noted that by combining the technical strengths and local expertise of David Evans with AtkinsRéalis’ global resources, the company is well-positioned to deliver large-scale infrastructure projects that address critical challenges in transportation, energy, and environmental sustainability.

David Evans will initially continue to operate as an independent entity, with its leadership team and employee shareholders retaining a minority stake in the company. The agreement outlines a clear transition plan for AtkinsRéalis to assume full ownership over a defined period, ensuring a smooth integration of operations.

How Will the Deal Strengthen Infrastructure and Transportation Projects?

One of the key advantages of this acquisition is its direct impact on transportation infrastructure projects across the Western United States. David Evans generates approximately $275 million in annual revenue, with more than 50% of this coming from transportation projects. The firm is recognized among Engineering News Record’s Top 100 Pure Design Firms and holds a Top 5 ranking in the Northwest.

With an established track record in highway design, transit solutions, and infrastructure development, David Evans has been a trusted partner for State Departments of Transportation in the Pacific Northwest, California, and the Mountain West region. The integration with AtkinsRéalis will bolster mass transit planning, rail and transit engineering, and traffic management solutions, allowing both companies to better support the expanding infrastructure needs of state and federal agencies.

Steve Morriss, President of U.S., Latin America, and Minerals & Metals at AtkinsRéalis, highlighted the importance of leveraging world-class talent and fostering innovation to drive infrastructure solutions. He noted that the acquisition would enable both companies to scale their expertise, improve project execution, and expand opportunities for employees in a dynamic and growing market.

What Role Does the Acquisition Play in the Power and Renewables Market?

Beyond transportation, the acquisition strengthens AtkinsRéalis’ presence in the power and renewables market, an area experiencing rapid growth due to the global energy transition. David Evans’ emerging capabilities in renewable energy infrastructure, environmental consulting, and water resource management align with AtkinsRéalis’ century-long expertise in power generation and distribution.

The combination of expertise will allow AtkinsRéalis to better serve local, state, and federal government agencies, as well as private sector clients, in their efforts to implement sustainable energy solutions. As the U.S. continues to invest heavily in clean energy infrastructure, this partnership provides a competitive advantage in securing contracts for solar, wind, and hydroelectric projects.

How Will the Deal Enhance Emergency Response and Disaster Management?

A critical aspect of the acquisition is its potential impact on emergency response and disaster management services. Both AtkinsRéalis and David Evans have significant experience in crisis response, infrastructure resilience, and disaster recovery planning.

By integrating their expertise, the companies can collaborate on large-scale emergency response projects, assisting communities affected by natural disasters such as wildfires, hurricanes, and floods. This shared capability strengthens their ability to support state and federal emergency response agencies in rebuilding critical infrastructure after major disasters.

What Are the Financial and Legal Aspects of the Acquisition?

The acquisition process is being managed with financial advisory support from TD Securities, which is acting as AtkinsRéalis’ exclusive financial advisor. Legal counsel for AtkinsRéalis is being provided by Hogan Lovells. On the side of David Evans Enterprises, AEC Advisors, through its registered broker-dealer affiliate AEC Transaction Services LLC, is serving as the exclusive financial advisor, while Tonkon Torp LLP is handling legal representation.

The transaction remains subject to final shareholder approvals and regulatory clearances, but both companies anticipate that it will be completed within the first half of the year. Once finalized, the acquisition will mark a pivotal moment in AtkinsRéalis’ U.S. expansion, further solidifying its presence in key growth markets.

What Does This Mean for the Future of AtkinsRéalis and David Evans?

The acquisition of David Evans Enterprises by AtkinsRéalis is a strategic move to enhance infrastructure capabilities, expand market share, and drive long-term growth in the U.S. engineering and construction industry. By integrating technical expertise, project management skills, and a strong regional presence, the two firms are well-positioned to lead the development of major infrastructure projects across the Western United States.

Al Barkouli, Chairman and Chief Executive Officer of David Evans Enterprises, emphasized that the partnership aligns with the company’s strategic goals, positioning David Evans as a leader in engineering services with an expanded national presence. He expressed confidence that the collaboration with AtkinsRéalis will open new opportunities for both companies, their employees, and their clients.

As AtkinsRéalis continues to execute its U.S. expansion strategy, this acquisition represents a significant step toward strengthening its role in the infrastructure sector, ensuring that it remains a leading force in transportation, power, and sustainable development projects for years to come.