WSP to Buy Warburg-Owned Engineering Firm for $3.3 Billion
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Article content(Bloomberg) — Canada’s WSP Global Inc. reached a deal to buy a US engineering firm from Warburg Pincus LLC with the financial backing of its largest shareholder, Quebec’s public pension fund.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentWSP will pay $3.3 billion in cash for Windsor, Connecticut-based TRC Companies Inc., which sells engineering and consulting services to electrical utilities, energy firms and other customers, according to a statement Monday. The Montreal-based company said the transaction would position it as the largest engineering and design firm in the US, building on a series of earlier acquisitions.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIt’s the latest in a string of deals that has turned WSP from a little-known midcap Canadian engineering company into a sprawling entity with more than 200 offices in the US and locations in dozens of countries including China, the United Arab Emirates and Germany. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“We don’t believe in growth for growth’s sake. We do it because our clients demand it,” WSP Chief Executive Officer Alexandre L’Heureux said at an event in Montreal last month. “Our clients are asking for more services, so we will seek out this technical expertise both organically and inorganically.”Article contentTo pay for it, the Canadian firm plans to sell about C$850 million ($617 million) in shares, with C$118 million coming from the Caisse de Depot et Placement du Quebec, which would own about 14% of the company. Article contentCanadian Imperial Bank of Commerce and JPMorgan Chase & Co. have committed to the debt financing for the acquisition, WSP said. Article contentTRC had $1.5 billion of revenue and $192 million of adjusted earnings before interest, taxes, depreciation and amortization for the year ended June 30. The deal will be accretive to WSP’s adjusted earnings per share before any cost-cutting, according to the company. Article contentWarburg bought TRC from New Mountain Capital in a deal announced in October 2021. At the time, the engineering firm said it had just fewer than 6,000 employees. Now it has about 8,000 staff, according to Monday’s statement. Article content(Updates with additional information on the deal, beginning in the second paragraph.)Article contentTrending Stellantis hires 1,000 workers in Windsor as Brampton dispute continues Autos The Federal Reserve’s rate cut was a clear signal to investors Investor Posthaste: Canada's provinces face 'deteriorating' outlook, says Fitch Ratings News Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Stellantis hires 1,000 workers in Windsor as Brampton dispute continues Autos The Federal Reserve’s rate cut was a clear signal to investors Investor Posthaste: Canada's provinces face 'deteriorating' outlook, says Fitch Ratings News Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work