Construction contractor The Churchill Corp. says it has purchased Winnipeg-based electrical contractor McCaine Electric Ltd. for $11.5 million in cash and shares.
The Calgary-based company said Monday that the company will become part of Churchill's commercial division Canem Systems Group.
The transaction breaks down into $9 million of cash and $2.5 million in shares, with a possibility of another $1 million payment based on McCaine Electric's earnings in 2012 and 2013.
McCaine has worked on several high-profile projects in Manitoba, including the new Winnipeg Blue Bomber Stadium project, as well as the University of Winnipeg's Richardson College for the Environment and the St. Boniface General Hospital Cardiac Centre.
"We are extremely excited about the opportunity to acquire a well-managed company such as McCaine whose people share our vision of safety, quality and on-time project execution," said Al Miller, Canem's president and chief operating officer of Canem.
"This transaction positions us to increase market share in the electrical contracting and data communications sector, both in Manitoba and across Western Canada."
McCaine Electric posted revenues of $30 million in the year ended Dec. 31, 2010 and $37.5-million backlog to date, Churchill said in a release.
"In addition to securing the long-term future of our people and our company, this transaction immediately positions McCaine to leverage the operational and field experience Canem has demonstrated in executing large construction projects," said McCaine managing partner John Schubert.
"Canem has demonstrated in executing large construction projects. Together we will be able to pursue additional large projects beyond our current capability, expand our service offering and increase our market share in Manitoba."