Stantec to amass Environmental Methods Design, Inc., a number one constructing engineering design agency specializing in mission essential and knowledge middle experience

Stantec

EDMONTON, Alberta and NEW YORK and CHICAGO, June 8, 2023 (GLOBE NEWSWIRE) — TSX,NYSE:STN

Stantec, a global leader in sustainable design and engineering, has signed an agreement to acquire Environmental Systems Design, Inc. (ESD), a 270-strong engineering firm headquartered in Chicago. Founded in 1967, ESD has built a reputation for excellence and innovation in high-performance design with a list of industry-leading customers. The terms of the transaction are not disclosed.

The acquisition of ESD significantly increases Stantec’s expertise in mission-critical facilities and data center design. Mission-critical facilities represent a fast-growing segment of dedicated infrastructure that requires higher levels of reliability. These facilities—spanning almost every major industry—are designed to keep building infrastructure, emergency dispatch, data storage, or other critical functions running during inclement weather and utility outages. Data centers like hyperscale facilities require specialized, resilient design considerations developed by uniquely skilled teams that regularly address the changing needs of large organizations.

With the acquisition of ESD, Stantec expands its mechanical, electrical, plumbing (MEP) and civil engineering businesses in the United States by 40 percent. These additional resources significantly expand the company’s smart building capabilities, supporting the workplace of the future and the emerging trends of decarbonization, building repositioning and adaptive reuse.

“Bringing talent and ESD together positions Stantec as one of the leading integrated design companies in the US market,” said Leonard Castro, executive vice president and head of Stantec’s Buildings business unit. “Our expanded data center, smart building design, and high-performance building services will provide our customers with the flexible and resilient facilities to meet their operational needs well into the future.”

“Stantec is a world-class company that shares our vision of improving society through the built environment,” said Raj Gupta, ESD CEO. “ESD has increased the depth and breadth of its services in recent years. By joining Stantec, we are expanding our offering globally and creating exceptional career opportunities for our employees.”

The story goes on

Critical Project Experience
ESD provides data center design services to multiple companies Industry-leading technology customers. ESD was recently engaged by a confidential client to provide peer reviewed and hyperscale data center design services and has subsequently been engaged in the construction of multiple hyperscale data centers across the United States on their behalf. Hyperscale campus developments range from a single 500,000 square foot facility (20 to 30 megawatts of power) to multiple multi-million square foot facilities (over 300 megawatts of capacity). Several sites across the country share a common basic concept with local adjustments and are designed for efficient incremental expansion without disrupting ongoing facilities.

Other projects in the ESD portfolio include:

• MEP and mission critical engineering for the United Airlines Network Operations Center in Chicago, an important part of the airline’s day-to-day operations. Building Information Modeling (BIM) was used to route new systems through and around existing structures. ESD worked closely with the City of Chicago and provided specialized consulting services in the areas of electrical and fire detection codes to provide a unique furniture wiring design that met all of United’s requirements.

• MEP and fire protection technology for the 1,400,000 square meter expansion of the Las Vegas Convention Center, one of the largest convention centers in the world. The new West Hall includes 600,000 square meters of flexible exhibition space with numerous infrastructure services, including various voltages and capacities, telecommunications, water and sewage, and natural gas. Additional program and support spaces include a reception hall, meeting rooms, lobbies and a cafe/kitchen area.

• MEP and fire safety engineering and energy modeling for Northwestern Medicine Lake Forest Hospital in Illinois. The 201-bed hospital has been designed to meet future demand and earn LEED Silver certification. Energy saving measures included optimizing the thermal performance of the façade while balancing solar heat from the glass, external shading methods, LED lighting and more. ESD also reduced the use of plumbing fixtures by 20 percent and household hot water consumption by 26 percent.

Stantec has three existing offices in Chicago and five in Illinois. With a large concentration of employees in Chicago, ESD also has offices in New York City, San Francisco and Phoenix. The acquisition will expand Stantec’s footprint to nearly 600 in Chicago and more than 2,050 in the wider 12-state north-central region.

The acquisition is expected to close on June 30, 2023.

About Stantec
Communities are fundamental. Whether around the corner or around the world, they provide a foundation, a sense of place and belonging. That’s why we at Stantec always Design with the community in mind.

We are designers, engineers, scientists and project managers innovating together at the intersection of community, creativity and client relationships. Balancing these priorities results in projects that improve the quality of life in communities around the world.

Stantec trades on the TSX and NYSE under the symbol STN.

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