SNC-Lavalin sells Scandinavian division as first major step in its strategic review
MONTREAL – SNC-Lavalin Group Inc. says it has struck a deal to sell its Scandinavian engineering business to a French consultancy, the first major step in its strategic review.
SNC-Lavalin says the sale to Systra Group, which specializes in public transport, will raise about £80 million, or about $136 million.
SNC launched a strategic review in March, with a view to selling off assets as the company sought to move away from costly fixed-price construction contracts and sharpen its game as a pure engineering firm in green energy and infrastructure.
Among other potential divestments, CEO Ian Edwards has pointed to SNC’s seven percent stake in the Hwy. 407 toll road at Toronto and to Linxon, a joint venture with Hitachi Energy that focuses on electrical substations.
RBC Dominion Securities analyst Sabahat Khan says the Scandinavian segment generated marginal profits and about $95 million in revenue a year — less than two percent of SNC’s annual total.
The agreement to sell the division, which employs 750 employees in Denmark, Sweden and Norway, is expected to close in the fall, subject to regulatory approvals and customary closing conditions.
This report from The Canadian Press was first published on July 7, 2023.
Companies in this story: (TSX:SNC)
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