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Canadian firm acquires RHL Design Group

PETALUMA, March 17, 2008 -- RHL Design Group, a Petaluma-based architecture and civil engineering firm with 170 employees in the western U.S., was acquired by Canada-based Stantec (TSX: STN; NYSE: SXC).

The purchase price wasn't disclosed.

The Petaluma headquarters of RHL, which employs about 100, will remain, as will co-presidents John Johnson and Brian Zita. They will be vice presidents in Stantec's newly formed commercial program development practice.

"It came from their interest in commercial development work and were interested in expanding into that more," Mr. Johnson said about the deal, which started coming together at the end of last year.

He said that being a part of Stantec will give RHL clients, such as Wachovia, Starbucks, Rite Aid, Fresh & Easy Neighborhood Markets, Chevron, Hertz and McDonald's, access to a more complete range of engineering services.

Stantec said in a statement that RHL is a "recognized leader" in design work for companies with multiple locations regionally or nationally. RHL started in 1966 and grew steadily, but the firm hit its stride in the mid-1980s as it took on large corporate clients.

Billings for RHL were just more than $35 million last year, compared with $27.6 million in 2006.

Edmonton, Alberta-based Stantec employs 8,500 in 125 North American offices. Company revenue last year was $954.6 million.