SNC-Lavalin Acquires Balance of ProFac for $22.5 Million
MAY 26, 2000
MONTREAL, QUEBEC--SNC-Lavalin today strengthened its position in
the high growth facilities management business by increasing its
ownership of ProFac Facilities Management Services Inc. from 50
per cent to 100 percent. It paid $22.5 million to Bracknell
Corporation for its shares in the company. ProFac is the largest
Canadian provider of the full range of facility, property and
infrastructure management services.
Taro Alepian, Executive Vice-President of SNC-Lavalin Group and a
member of the Office of the President, has been named President
and Chief Executive Officer of ProFac, and of Nexacor Realty
Management Inc. Earlier this year, ProFac acquired Nexacor from
Bell Canada, to expand its business into the telecommunications
and utilities sectors.
"Facility management represents a tremendous growth area as more
and more multi-location companies throughout North America
outsource non-core services," said Mr. Alepian. "This acquisition
is an important strategic step, with others to follow, in
positioning ourselves to capture a significant share of this
exciting business. Now that we can more directly leverage the
management expertise and high-volume purchasing power of
SNC-Lavalin, ProFac will be able to deliver additional cost
savings to its clients, achieve higher margins and contribute to
the strategic and financial success of SNC-Lavalin."
A key competitive differentiator for ProFac is its extensive use
of information technology to maximize productivity and
performance. Its integrated web-based systems play an important
role in operations, procurement and supply chain management,
accounting, financial monitoring and reporting, and human resource
management. It also has extensive smart building monitoring and
control capabilities with 24/7 call centre services.
ProFac commenced operations in 1994 as a jointly owned company by
SNC-Lavalin and Bracknell. It currently manages more that 6,200
properties representing 82 million square feet for numerous
multi-location clients. ProFac's major clients include Bell
Canada, the Canadian Broadcasting Corporation, Canada Post, and
the Ontario Realty Corporation, a Crown agency of the Ontario
government. ProFac and its subsidiaries employ about 1,100
professional managers, engineers, technicians and support staff,
with current revenues of more than $400 million per year.
SNC-Lavalin Group is one of the leading engineering and
construction firms in the world, and a key player in the ownership
and management of infrastructure. The group and its companies
have offices across Canada and in 30 other countries, and are
currently working in some 100 countries. The company is listed on
the Toronto Stock Exchange (symbol: SNC). |
