AtkinsRéalis to acquire majority stake in David Evans Enterprises, Inc., forming a leading growth platform for the Western US

MONTREAL, Feb. 18, 2025 /CNW/ - AtkinsRéalis Group Inc. (TSX: ATRL), a world-class engineering services and nuclear company with offices around the world, announced today that it has entered into a definitive agreement to acquire a majority stake in David Evans Enterprises, Inc., the parent company of David Evans and Associates, Inc. (collectively called "David Evans"), a leading employee-owned engineering and staff augmentation services firm headquartered in Portland, Oregon. With 34 offices in 10 states and approximately 1,250 employees, David Evans serves the transportation, power, water & environment, surveying & geomatics, and land development markets, as well as staffing services.

Under the terms of the transaction, AtkinsRéalis will acquire a 70% stake in David Evans for approximately US$300 million in cash payable at closing, with a clear path to entire ownership within a defined agreed time period. David Evans will continue as a legal entity until then and its leadership team will remain in place and employee shareholders will remain minority shareholders in David Evans. The transaction is subject to customary closing conditions and David Evans' shareholders' approvals, and is expected to close in the first half of 2025.

"We are delighted to partner with the David Evans Enterprises, Inc. team. Together our two firms significantly enhance our geographic footprint and capabilities in a core growth market, aligning with our US Land and Expand strategy. By leveraging our combined strengths in the US, we are poised to drive innovation and deliver long-term value," said Ian Edwards, President and Chief Executive Officer of AtkinsRéalis. "For our strategy, this creates a Western US platform on which to grow both companies, capable of delivering comprehensive solutions to address our combined clients' most critical challenges."

Founded in 1976 and employee-owned, David Evans is a nationally recognized services firm known for its world-class culture, technical excellence, innovative and sustainable design, and management and staffing solutions. The transaction will give both businesses immediate access and a leading position in the Western US and complements a growing national presence. The future combination will further strengthen AtkinsRéalis' US business by increasing its total US workforce by approximately 25%.

David Evans generates approximately US$275 million in annual revenue, with over 50% of this revenue coming from the Transportation sector. David Evans also consistently ranks among Engineering News Record's Top 100 Pure Design firms in the United States and is ranked in the Top 5 in the Northwest Top Design Firms.

In addition to the complementary geographic footprint in the US, the investment in David Evans further strengthens AtkinsRéalis' technical capabilities in full-scale transportation and infrastructure design. By leveraging its combined strengths in design and project management, the Company further increases its ability to deliver large-scale complex projects, thus generating sustained long-term value for its clients and the communities it serves.

David Evans is a regional leader in transportation design and together with AtkinsRéalis' deep US and global expertise and capabilities in transportation surface design, will allow both firms to support the historical expansion of large-scale infrastructure needs within the State Departments of Transportation in the Pacific Northwest, California, and the Mountain West region. AtkinsRéalis' industry leading rail and transit, signals and systems design capabilities will augment David Evans' regional experience and expertise in delivering mass transit projects to address network expansion in the Pacific Northwest and California. 

David Evans' capabilities in water & environmental, land development, marine, survey and geomatics, and staffing services also allows AtkinsRéalis' to further bolster its offerings across the whole of the US with Local, State and Federal governments and private clients. Addressing the rapidly expanding Power & Renewables market, David Evans' emerging capabilities will leverage AtkinsRéalis' more than 100 years of experience in the power sector to address the clients' needs driven by the energy transition.

This investment brings together two uniquely positioned and experienced companies in emergency response, staff augmentation and management at the forefront of assisting communities coast to coast in responding and helping to recover when natural disasters strike. The firms share a deep understanding of clients' needs and will immediately collaborate on projects together.

"The groundbreaking partnership between David Evans Enterprises, Inc. and AtkinsRéalis is aligned with our strategic vision and leverages our exceptional professional services in the Western United States and beyond", said Al Barkouli, Chairman and Chief Executive Officer of David Evans Enterprises, Inc. "With highly complementary geographical footprints and technical expertise, this positions us as a leader with comprehensive project execution capabilities."

"David Evans and AtkinsRéalis thrive by prioritizing our people and leveraging world-class talent. By promoting professional development, enhancing skills, and engaging our team, we create a supportive environment where excellence is a core value, opening up more opportunities for both current and future employees", stated Steve Morriss, President, US, Latin America, and Minerals & Metals of AtkinsRéalis. "This commitment to our people ensures we deliver exceptional results for our clients and communities."

TD Securities is acting as exclusive financial advisor to AtkinsRéalis on the transaction with legal advice being provided by Hogan Lovells. AEC Advisors, through its registered broker-dealer affiliate AEC Transaction Services LLC, is acting as the exclusive financial advisor to David Evans Enterprises, Inc. on the transaction with legal advice being provided by Tonkon Torp LLP.

About AtkinsRéalis

Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-leading engineering services and nuclear company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world's infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services, Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.

About David Evans

David Evans is a professional services consulting firm with offices in the Western United States, Mississippi, New York, and Texas. David Evans specializes in design for transportation, land development, energy, and water and environmental infrastructure projects across the nation. The firm's staff includes engineers, surveyors, hydrographers, planners, landscape architects, and natural resources scientists. David Evans is consistently ranked among ENR's Top 100 Pure Design Firms in the U.S. In addition, David Evans' staffing subsidiaries focus on staff augmentation, contract-to-hire, and direct placement services. www.deainc.com

Forward-Looking Statements

References in this press release to the "Company", "AtkinsRéalis", "we", us" and "our" mean, as the context may require, AtkinsRéalis Group Inc. or all or some of its subsidiaries or joint arrangements or associates. Statements made in this press release that describe the Company's expectations or strategies, including with respect to the acquisition of a significant controlling interest of David Evans (the "Transaction"), constitute "forward-looking statements" and can be identified by the use of the conditional or forward-looking terminology such as "estimates", "expects", "forecasts", "intends", "may", "objective", "plans", "projects", "should", "will", "likely", or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions or results could differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company's current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements made in this press release are based on a number of assumptions believed by the Company to be reasonable as at the date hereof and are subject to important risks and uncertainties, including the satisfaction of all closing conditions (which involves obtaining the required approval from shareholders of David Evans) and the successful completion of the Transaction within the anticipated timeframe; management's estimates and expectations in relation to future economic and business conditions and other factors in relation to the Transaction and resulting impact on growth and accretion in various financial metrics; and the absence of significant undisclosed costs or liabilities associated with the Transaction.

The forward-looking statements herein reflect the Company's expectations as at the date of this press release and are subject to change after this date. The Company does not undertake to update publicly or to revise any such forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.

SOURCE AtkinsRéalis