MONTREAL – Genivar says ambitious plans to expand its engineering and construction consulting business won’t be sidetracked by the corruption cloud that’s hanging over Quebec’s construction industry.
Chief executive Pierre Shoiry said Thursday that he welcomes efforts by the provincially appointed Charbonneau commission to help remove the cloud and poor public perception that hangs over the industry.
The inquiry, which was formally launched this week and begins hearings next month, was called to examine alleged links with criminal groups and corruption.
While that exercise is expected to expose problems, Genivar said the information shouldn’t scare off potential acquisition targets.
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The Montreal-based engineering and construction consultant wants to boost its annual revenues to $1.5 billion within three years, primarily through acquisitions in Canada and around the world.
Its efforts have attracted the financial support Canada’s two largest pension fund managers. The Canada Pension Plan Investment Board and Caisse de depot et placement du Quebec have each acquired a 10 per cent stake in Genivar for $80 million.
In 2011, Genivar added 10 companies and earned $50 million on $651.9 million of revenues.
Meanwhile, Shoiry says Genivar hasn’t won contracts at the expense of its larger rival SNC-Lavalin (TSX:SNC), whose reputation has been tarnished by internal problems – including a police investigation begun after SNC’s board announced it had discovered $35 million of undocumented payments.
However, an examination of Genivar’s internal policies found it fully complied with the oversight recommendations proposed by an independent SNC investigation into $56 million of payments to sales agents.
In addition to growing its activities in Atlantic Canada, Western Canada and Ontario, Genivar is also targeting opportunities in industrialized countries such as the United States, Australia, Britain and France.
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