MONTREAL – Engineering consulting firm Genivar Inc. (TSX:GNV) said Monday it has bought two consulting engineering firms specialized in environmental remediation.
Genivar did not disclose the prices it paid for privately held Groupe OptiVert Inc. of Quebec and Alberta-based JMH Environmental Solutions Ltd.
But Pierre Lacroix of Desjardins Securities estimated the purchase price at between $3 million and $5 million.
In a research note, Lacroix described the acquisitions as neutral. He said Genivar has indicated that acquisitions will help it target more than 15 per cent growth in 2011.
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OptiVert specializes in forest management consulting services, while JMH specializes in oil and gas environmental consulting, the company said in a statement. Together the companies employ 35 people but that number can double during their high seasons, Genivar said.
The acquisition of OptiVert “which nicely adds to our current array of expertise in environment, will enable us to strategically position Genivar in anticipation of large-scale environmental projects that Plan Nord will catalyze, such as access roads and forest products optimization,” said Genivar environment vice-president Andre-Martin Bouchard.
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“OptiVert capabilities are 100 per cent complementary to our existing ones”
JMH, which is mainly active in Western Canada, “is well-aligned with our growth objective and also provides the capabilities to increase our services to current clients,” said Alberta vice-president John Nielsen.
“As environmental services related to the oil and gas industry are booming, this will allow us to diversify the services we offer this customer group.”
On the Toronto Stock Exchange, Genivar’s shares lost 23 cents at $25.50 in morning trading.
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