Parkland Pipeline Contractors is in the process of being sold to a Passadena, California-based environmental engineering and construction firm.
Tetra Tech announced late last week it is in the process of buying the Olds-based company to provide additional core water, environmental and engineering work to the pipeline industry.
"Like other previous acquisitions, Parkland enables Tetra Tech to provide additional core water, environmental and engineering work to the pipeline industry while better serving these customers,î said Tetra Tech's Chairman and CEO Dan Batrack in a prepared statement. "We will be able to offer pipeline clients a cross-border, full-service solution. Parkland significantly expands our services to the North American energy market, and has consistently produced double digit operating margins.î
The deal is currently under review by the federal competition bureau, said Derek Britton, vice-president of operations for Parkland. He said it's unknown when the deal could be completed, but speculated it could take as long as the end of March.
Britton declined to say how much the deal is worth.
Britton said the company will try and make the transition to the new owner as seamless as possible, making as few changes as possible.
"Our plan is to keep things as close to normalcy as possible. That's why (Tetra Tech is buying) us because we are efficient at what we do. So our plan is to leave things as they are and their plan is to leave it as such. We view it as a positive step forward,î he said.
The two companies entered into talks due to the aging ownership of Parkland and the younger management group of the company looking to expand its scope of projects.
"The takeover with Tetra Tech allows us to expand into Ö new markets and larger projects,î Britton said.
The company employs up to 900 people on an annual basis and takes on projects ranging in the $100-million range. Parkland has approximately $140 million in annual revenue
The majority of the company's administrative staff is based in Olds, with project staff coming from around Western Canada.
