Stantec to acquire ZETCON Engineering, a leading German infrastructure firm
November 14 2023 - 5:00PM
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 StantecCommunities 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
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We're designers, engineers, scientists, and project managers,
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and client relationships. Balancing these priorities results in
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Stantec trades on the TSX and the NYSE under the symbol STN.
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danny.craig@stantec.com
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