Carillion has acquired 60% in a Canadian power transmission and distribution services business.

Rokstad Power Corporation, which is based in British Columbia, Canada, provides a full range of transmission and distribution power line services, including specialist live line operations, and has expanded its operations in strategic locations primarily across Canada.

With over 600 employees and an extensive fleet of specialist equipment, Rokstad is well positioned to meet the growing demand for electricity and the need to rebuild ageing electric power infrastructure.

-- Advertisement --

Rokstad is a family-owned company, which has been led very successfully by Chief Executive Aaron Rokstad and President Bernie Rokstad, who will continue to lead the business following this acquisition.

The total cash consideration for the acquisition of up to £33m is dependent on the financial performance of Rokstad.

The consideration will be paid in instalments over the period to July 2017, with payments of £11m and £10m in 2014 and 2015, respectively. The instalments to be paid in 2016 and 2017, which are dependent on financial performance, will be capped at a combined total of £12m. Under the acquisition agreement, Carillion has also committed to acquire the remaining 40% interest in Rokstad after five years at a multiple of 4.5 times Rokstad's 2019 EBITDA, capped at a maximum additional consideration of £42m.

(CD/JP)