Bird Construction Inc T.BDT

Alternate Symbol(s): BIRDF

Industrials Conglomerates

Bird Construction Inc. is a Canadian construction company. The Company operates from coast-to-coast and serves various Canadian markets. The Company provides a comprehensive range of construction services from new construction for industrial, infrastructure and institutional markets; to industrial maintenance, repair and operations services, heavy civil construction, and mine support services; as well as vertical infrastructure, including electrical, mechanical, and specialty trades. The Company uses a variety of contract delivery methods, including construction management, cost plus, integrated project delivery (IPD), progressive design build, stipulated sum, unit price, standard specification design-build, alternative finance projects, complex design-build and public private partnership (PPP) contract delivery methods.

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Bird Construction Inc

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Post by retiredcfon Sep 01, 2021 2:19pm

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Post# 33795333

TD

This is a flash report and they currently have an $11.50 target. GLTA

Bird Construction Inc.

(BDT-T) C$9.88

Bird Announces Ontario Civil Infrastructure Tuck-In Acquisition Event

Last night, Bird announced the acquisition of Dagmar Construction, a civil infrastructure construction company headquartered in Ajax, Ontario.

Impact: SLIGHTLY POSITIVE

Dagmar operates across civil infrastructure sub-sectors, including road, bridge, rail, sewer and water, and commercial-institutional sites. According to Bird, Dagmar has developed a niche for delivery of complex and specialized civil infrastructure projects for both private and public owners across Ontario.
Strategic Considerations: The acquisition provides Bird a platform to expand its capabilities and relationships in Canada's largest civil infrastructure market (note: the horizontal infrastructure sector is an area that Bird has previously highlighted as being of strong interest). We view the addition of Dagmar's specialized self-perform transportation and rail capabilities as complementary to Bird's existing civil construction expertise (largely focused on industrial markets). Bird expects the integrated business to provide opportunities to self-perform a higher portion of work on larger, complex projects, enabling Bird to drive higher margins. Further, Bird expects the integrated business will be positioned to leverage strong cross-selling opportunities with major clients across Canada.
Terms of the Transaction: The acquisition's purchase price is $32mm (before working capital adjustments). Bird has financed 80% of the transaction through debt, and the balance through newly-issued Bird common shares ($9.75/share issue price; five-year vesting period). We estimate a transaction multiple (EV/ EBITDA) in the 4.0x–5.0x range (vs. BDT's EV/2022E EBITDA valuation of 6.1x at yesterday's close). At the mid-point of the range, our estimated transaction multiple implies Dagmar EBITDA of ~$7.0mm (for context, we forecast 2022 EBITDA for standalone Bird of $108.3mm).
Expanded Credit Facility: Bird also announced today that it has extended its credit facility by one year (to September 1, 2024) and expanded the committed portion of its credit facility to $235mm (was $200mm). The expanded committed credit facility comprises a $185mm revolving facility (was $165mm) and a $50mm non-revolving term debt facility (was $35mm). Bird also has an uncommitted accordion for up to $50mm (unchanged).
Separately, we remind that Bird will host a virtual Investor Day on September 9, 2021. The event will include an overview of the company's 2022–2024 Strategic Plan.