- Engineering and professional services firm WSP Global Inc. (TSX:WSP) will acquire U.S.-based Power Engineers for C$2.4 billion
- WSP seeks to deepen its footprint in the United States with this acquisition, opening doors to a broader blue-chip customer base and providing opportunities for cross-selling across sectors
- Power Engineers, a U.S.-based consultancy in the energy sector, earned C$927.8 million in net revenue in 2023 and serves prominent North American power utilities
- WSP Global Inc. opened trading at C$209.00 per share
Engineering and professional services firm WSP Global Inc. (TSX:WSP) will acquire U.S.-based Power Engineers for C$2.4 billion.
Power Engineers, a U.S.-based consultancy in the energy sector, earned C$927.8 million in net revenue in 2023 and serves prominent North American power utilities.
WSP seeks to deepen its footprint in the United States with this acquisition, opening doors to a broader blue-chip customer base and providing opportunities for cross-selling across the transportation, infrastructure, environment, building, energy, water and mining sectors. The team can strengthen its presence in the power and energy industry with this addition of around 4,000 professionals specialized in the field.
WSP is working to be the preeminent pure-play global consulting firm for the world’s energy transition, which is projected to contain a US$21.4 trillion global investment in electricity grids by 2050, according to BloombergNEF’s latest energy outlook.
“The acquisition will mark a transformative step that will position us at the forefront of the energy transition,” WSP’s president and chief executive officer, Alexandre L’Heureux, said in a news release. “This opportunity brings forth a wealth of strategic benefits, including an expanded suite of innovative solutions for our clients and continuous professional growth opportunities for our employees. By uniting WSP’s extensive global network and Power’s deep technical expertise, we are poised to provide exceptional solutions and service quality to foster significant advancements in the communities we serve. The trust of our shareholders and our commitment to excellence will empower us to influence the future of the energy sector as we plan to expand our reach and power a sustainable future across the globe.”
The Montreal-based company expects cost-savings of a minimum of about C$34.3 million to be achieved by the end of 2026, while it also expects to immediately boost WSP’s adjusted net earnings per share before synergies.
To finance the deal, WSP has secured a C$500 million bought deal public offering in concurrent private placements from GIC, CDPQ, BCI and CPP Investments.
Power Engineers’ current president and chief operating officer, Holger Peller, will lead WSP’s global plant and equipment platform post-acquisition.
The deal is expected to close by early Q4 2024.
WSP Global provides advisory, engineering and design services to clients seeking solutions in the transportation, infrastructure, environment, building, energy, water and mining sectors.
WSP Global Inc. (TSX:WSP) stock opened trading at C$209.00 per share and has risen more than 200 per cent in the past five years.
Join the discussion: Find out what everybody’s saying about this stock on the WSP Global Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo: WSP Global Inc.)