North American design and consulting giant
) signed a letter of intent for acquiring ADD Inc, a 210-person
architectural firm based in Boston. The deal, expected to reinforce
Stantec's East Coast operations, will likely conclude in September.
Other terms of the deal were kept under wraps.
ADD specializes in designing tiny but efficient micro apartments.
It has also designed quite a few outstanding Boston-area buildings,
like the Massachusetts College of Art's "Tree House" residence
building and the One Channel Center, a new office building in the
South Boston waterfront occupied by State Street Corp,
ADD's capabilities include remarkable projects in commercial
development, hospitality, workplace design, retail, mixed-use
housing and academic institutions.
Stantec intends to capitalize on the lucrative growth opportunities
available in the urban centers of North America. To this end, the
company decided to acquire ADD so as to strengthen its Buildings
business line in the eastern U.S. ADD's existing foothold in the
area will provide Stantec with a platform to leverage the growth
prospects offered by the region.
With the two companies specializing in different areas, both will
benefit from each other's complementary capabilities. For instance,
in the college market, Stantec specializes in science and
technology spaces while ADD has expertise in residential and
student life facilities.
While Stantec will gain from ADD's building faculties and
expertise, ADD stands to benefit from the former's diverse
operations and access to new markets. Also, Stantec's scale of
operations will make ADD more resilient to market fluctuations.
If the deal closes successfully, the resulting entity will be
reportedly involved in numerous significant developments in the
Boston area, specifically in Boston's so-called "Innovation
District" and the fast-growing Assembly Square area of Somerville.
Stantec currently has a Zacks Rank #3 (Hold). Other better-ranked
stocks in the consulting industry that are worth a look include FTI
Consulting, Inc. (
), Gartner Inc. (
) and CRA International Inc. (
), each sporting a Zacks Rank #1 (Strong Buy).
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