Structure Tone scoops up Canadian construction management firm

Company has actively sought out merger opportunities outside US

<em>From left: Structure Tone's Robert Mullen and Govan's John Brown</em>
From left: Structure Tone's Robert Mullen and Govan's John Brown

Structure Tone has acquired a Canadian construction management firm as part of its efforts to expand and rejigger its ownership structure.

The company purchased Govan Brown, a Toronto-based firm that specializes in commercial, retail and hospitality interiors, Structure Tone announced on Tuesday. Govan completes more than $300 million worth of work each year and has six offices throughout Canada.

Structure Tone is one of the city’s most active contractors for renovation and interior work. The company took the top spot in The Real Deal‘s ranking of the top general contractors by renovation work from 2011 to 2016.

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The company has partnered with Govan over the past decade, but the acquisition means that Structure Tone will officially expand its services into Canada. In May, Structure Tone’s Jim Donaghy told TRD that the company was actively seeking out potential mergers with companies in Canada, as well as the West Coast and Europe.

Structure Tone, which was founded by Donaghy’s father Patrick and Lewis Marino in 1971, has been gradually moving toward an all-employee ownership structure. In January, the company decided to allow some managers and outside investors to acquire ownership stakes in the Structure Tone.

Under the deal, Govan will keep its name and current leadership. The firm’s management team will retain ownership in the company. Additional terms of the acquisition were not immediately available.