<SEC-DOCUMENT>0001193125-16-644483.txt : 20160708
<SEC-HEADER>0001193125-16-644483.hdr.sgml : 20160708
<ACCEPTANCE-DATETIME>20160708160104
ACCESSION NUMBER:		0001193125-16-644483
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160708
FILED AS OF DATE:		20160708
DATE AS OF CHANGE:		20160708

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STANTEC INC
		CENTRAL INDEX KEY:			0001131383
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ENGINEERING SERVICES [8711]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32562
		FILM NUMBER:		161759415

	BUSINESS ADDRESS:	
		STREET 1:		10160 112TH STREET
		STREET 2:		EDMONTON ALBERTA T5K 2L6 CANADA
		CITY:			EDMONTON
		STATE:			A0
		ZIP:			00000
		BUSINESS PHONE:		780-917-7000

	MAIL ADDRESS:	
		STREET 1:		10160 112 ST
		CITY:			EDMONTON, ALBERTA
		STATE:			A0
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>d210382d6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 6-K</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Washington, DC 20549 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Form 6-K </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Report of
Foreign Private Issuer </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Pursuant to Rule 13a-16 or 15d-16 of </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">the Securities Exchange Act of 1934 </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">For the Month of: July, 2016</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">Commission File Number: 001-32562</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>STANTEC INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Name of Registrant) </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>10160
&#150; 112 Street </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Edmonton, Alberta </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Canada T5K 2L6 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Address of
Principal Executive Offices) </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Form
20-F<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F<U>&nbsp;&nbsp;X&nbsp;&nbsp;</U> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1):<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="5"><B>STANTEC INC.</B></TD></TR>
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<TD VALIGN="top">Date: July&nbsp;8, 2016</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Daniel J. Lefaivre</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Daniel J. Lefaivre</TD></TR>
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<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top">Title:</TD>
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<TD VALIGN="bottom">Executive Vice President and CFO</TD></TR>
</TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT INDEX </B></P> <P STYLE="font-size:24pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00px solid #000000; width:29.50pt; font-size:10pt; font-family:Times New Roman">Exhibit</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00px solid #000000; width:89.60pt; font-size:10pt; font-family:Times New Roman">Description of Exhibit</P></TD></TR>


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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Business Acquisition Report</TD></TR>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d210382dex991.htm
<DESCRIPTION>EXHIBIT 99.1
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<HTML><HEAD>
<TITLE>Exhibit 99.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Stantec Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Form 51-102 F4 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Business
Acquisition Report </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>Item&nbsp;1</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Identity of Company </B></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>1.1</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Name and Address of Company </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Stantec Inc. (&#147;<B>Stantec</B>&#148;)
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">10160 &#150; 112 Street </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Edmonton, Alberta </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Canada T5K 2L6 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>1.2</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Executive Officer </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The name of the executive officer of Stantec who is
knowledgeable about the significant acquisition and this Business Acquisition Report is: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Dan Lefaivre </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Executive Vice President&nbsp;&amp; CFO </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Telephone: (780)&nbsp;917-7071 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>Item&nbsp;2</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Details of Acquisition </B></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>2.1</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Nature of Business Acquired </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">On May&nbsp;6, 2016, Stantec and its
wholly-owned subsidiary Mustang Acquisition, Inc. completed the acquisition (the &#147;<B>Acquisition</B>&#148;) of all of the issued and outstanding common shares of the entities comprising the business of MWH Global, Inc. (&#147;<B>MWH</B>&#148;).
MWH is a global engineering, consulting, and construction management firm with over 6,800 employees providing services in program management and management consulting, construction management services, and engineering and technical services
particularly in the water, renewable energy, and sustainability sectors. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>2.2</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Acquisition Date </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">May&nbsp;6, 2016. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>2.3</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Consideration </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The purchase price for the Acquisition was cash
consideration of US$792.6 million. Pursuant to the acquisition agreement, each share unit and share appreciation right of MWH outstanding immediately prior to the close of the Acquisition became fully vested in the form of MWH&#146;s common shares.
All notes receivable from MWH&#146;s shareholders (US$16.6 million) and the grant price related to all outstanding share appreciation rights (US$12.0 million) were offset against and reduced the per share acquisition consideration payable to such
shareholders resulting in a net purchase price of US$764.0 million. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Stantec financed the Acquisition through the net
proceeds of (a)&nbsp;a public offering of 19,964,000 subscription receipts sold for a price of CDN$30.25 each (the &#147;<B>Subscription </B> </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow" ALIGN="center">Page 1 </P>


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<B>Receipt Offering</B>&#148;), and (b)&nbsp;approximately $786 million drawn under new $1.25 billion syndicated senior secured credit facilities (&#147;<B>New Credit Facilities</B>&#148;)
consisting of a senior secured revolving credit facility in the maximum amount of $800.0&nbsp;million (the &#147;<B>Revolving Credit Facility</B>&#148;) and a $450.0 million senior secured term credit facility in three tranches of
$150.0&nbsp;million each (collectively, the &#147;<B>Term Loan</B>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><I><U>Subscription Receipt Offering </U></I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">On April&nbsp;7, 2016, Stantec filed a short-form prospectus with securities regulators in Canada and the United States
qualifying for distribution 19,964,000 subscription receipts (the &#147;<B>Subscription Receipts</B>&#148;), inclusive of 2,604,000 Subscription Receipts issued pursuant to the exercise in full of the underwriters&#146; over-allotment option, for
gross proceeds of CDN$603.9 million. Each Subscription Receipt entitled the holder thereof to receive one common share of Stantec upon closing of the Acquisition. Stantec&#146;s net proceeds from the Subscription Receipt Offering were approximately
CDN$580 million. All 19,964,000 Subscription Receipts were, in accordance with their terms, automatically settled on a one-for-one basis for common shares of Stantec upon closing of the Acquisition. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><I><U>New Credit Facilities </U></I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Concurrent with the closing of the Acquisition, Stantec entered into the New Credit Facilities. Both of the New Credit
Facilities may be drawn in Canadian dollars as either a prime rate loan or a bankers&#146; acceptance, US dollars as either a US-base rate or a LIBOR advance, or, in the case of the Revolving Credit Facility, in Sterling or Euros as a LIBOR advance
and by way of letters of credit. The Revolving Credit Facility has a four-year term. The first tranche of the Term Loan has a two-year term, the second tranche has a three-year term, and the third tranche has a four-year term. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The New Credit Facilities bear interest at the reference rate plus an applicable margin ranging from 0.00% to 2.75%, depending
on the nature of the loan drawn and Stantec&#146;s leverage ratio. Stantec also has available additional currencies under the Revolving Credit Facility on a case-by-case basis, dependent on availability from the lenders at the time of drawdown. As
security for the obligations under the New Credit Facilities, Stantec and certain of its subsidiaries (including certain entities acquired pursuant to the Acquisition) granted the lenders a first-ranking security interest over all present and
after-acquired assets, property, and undertakings, subject to customary carve-outs. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Stantec drew approximately $786
million under the New Credit Facilities to finance the Acquisition. The proceeds drawn under the New Credit Facilities were used to redeem all of Stantec&#146;s $70.0 million of 4.332% senior secured notes due May&nbsp;10, 2016, and all of its $55.0
million of 4.757% senior secured notes due May&nbsp;10, 2018. Stantec also used the proceeds from the New Credit Facilities to repay all of the outstanding indebtedness under Stantec&#146;s existing $350.0 million revolving credit facility and the
outstanding indebtedness of MWH under its existing revolving credit facility with Bank of America Merrill Lynch. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow" ALIGN="center">Page 2 </P>


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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>2.4</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Effect on Financial Position </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The Acquisition aligns with the long-term
strategic plan of Stantec and does not constitute a material departure from the existing business or operations of Stantec. Stantec does not presently have any plans or proposals for material changes in its business or affairs or of MWH&#146;s which
may have a significant effect on its results of operations and financial position of the company. Stantec&#146;s management believes that the Acquisition expands its geographic reach, enhances its cross-selling capacities to different end markets,
and creates additional growth opportunities. The Acquisition strengthens Stantec&#146;s position as a top tier design firm in the global water market. MWH has a diverse range of construction capacities, with the majority of the capabilities being
construction management at-risk performed on water-related projects in the United States and the United Kingdom. Management expects the construction business will add strong expertise that Stantec can use to better service its water clients, as well
as new skillsets that can be levered for alternative project delivery in other sectors. Stantec is currently assessing the activities required to integrate MWH&#146;s business into Stantec&#146;s existing organization. These integration activities
are expected to occur in stages over the next two years. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Upon the consummation of the Acquisition, the officers and the
members of the board of directors of MWH were no longer officers or members of the board of directors of Stantec. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The
expected effects of the Acquisition on the financial position of Stantec are outlined in the unaudited pro forma condensed combined financial statements of Stantec described in Item&nbsp;3 of this form. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>2.5</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Prior Valuations </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">No valuation required by securities legislation or a
Canadian exchange or market to support the consideration paid by Stantec pursuant to the Acquisition has been obtained within the last 12 months. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>2.6</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Parties to Transaction </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">No &#147;informed person&#148; (as such term is
defined in Section&nbsp;1.1 of <I>National Instrument 51-102 &#150; Continuous Disclosure Obligations</I>), associate or affiliate of Stantec was involved in the transaction other than the wholly-owned subsidiary of Mustang Acquisition, Inc. who
acquired the outstanding capital stock of MWH. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>2.7</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Date of Report </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman" ALIGN="justify">July&nbsp;8, 2016. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow" ALIGN="center">Page 3 </P>


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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>Item&nbsp;3</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Financial Statements and Other Information </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">The following financial statements and
related notes thereto, which have been filed under Stantec&#146;s profile on SEDAR at <U>www.sedar.com,</U> are incorporated by reference into and form part of this Business Acquisition Report: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">the audited annual consolidated financial statements of Stantec as at and for the years ended
December&nbsp;31, 2015 and 2014, in each case together with the notes thereto and the auditor&#146;s report thereon; and </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">included in the short-form prospectus filed on April&nbsp;7, 2016, in the Index to Financial Statements
section: </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">the audited annual consolidated financial statements of MWH as at and for the years ended January&nbsp;1, 2016
and 2015. The auditors of MWH have not given their consent to include their audited report in this business acquisition report. </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">the unaudited pro forma consolidated statement of financial position of Stantec that gives effect to the
Acquisition as if the Acquisition had occurred as of December&nbsp;31, 2015; and </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">the unaudited pro forma consolidated statement of income for the year ended December&nbsp;31, 2015, that gives
effect to the Acquisition as if the Acquisition had occurred on January&nbsp;1, 2015. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>CAUTIONARY STATEMENTS </I></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><I>Certain statements contained in this business acquisition report constitute forward-looking statements within the meaning of applicable
securities laws. Any such statements represent the views of management only as of the date hereof and are presented for the purpose of providing Stantec&#146;s shareholders and potential investors with information regarding Stantec, including
management&#146;s expectations with respect to the Acquisition and management&#146;s assessment of Stantec&#146;s future plans and financial outlook. Forward-looking information in this business acquisition report includes, but is not limited to,
statements regarding: management&#146;s belief that the Acquisition enhances its cross-selling capacities to different end markets and creates additional growth opportunities, management&#146;s expectations that the construction business of MWH will
add strong expertise that Stantec can use for better service delivery to existing water clients and lever for alternative project delivery in other sectors, and plans to implement integration activities for the combined company over the next two
years. These forward-looking statements reflect management&#146;s belief and assumptions based on information available at the time the information was stated and is not a guarantee of future performance. Stantec does not undertake to update or
revise any forward-looking statements contained in this business acquisition report or otherwise, whether as a result of new information, future events or otherwise, except as may be required by law. For additional information on our assumptions,
and the risks and uncertainties that could cause actual results of Stantec arising from the Acquisition to differ from the anticipated results of Stantec arising from the Acquisition, refer to Stantec&#146;s short-form prospectus and registration
statement dated April&nbsp;7, 2016, each of which are filed under Stantec&#146;s profile on SEDAR at www.sedar.com and with the SEC at www.sec.gov. </I></P>
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