WSP buys power infrastructure firm in latest M&A move

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Dive Temporary:

• To cap off an M&A news-heavy 2025,  Montreal-based WSP has made a deal to purchase TRC Companies, a U.S.-based energy and power contractor, for a $3.3 billion money buy worth, based on a Dec. 15 information launch.
• The transfer will assist WSP increase its efficiency in key markets and increase its relationships with purchasers, whereas additionally leveraging the roughly 8,000 staff at Windsor, Connecticut-based TRC to offer long-term worth for purchasers dealing with advanced infrastructure and power challenges, WSP mentioned.
• “With TRC’s extremely complementary experience in energy supply, transmission, distribution, and advisory providers, our mixed providing will cowl the whole utility and infrastructure worth chain,” mentioned Alexandre L’Heureux, WSP’s CEO, within the information launch. 

Dive Perception:

The deal itself is funded through a $732 million purchased deal public providing of widespread shares at $232.80 per every share, and roughly $118 million non-public placement of widespread shares on the provide worth to La Caisse, the province-managed funding agency of Québec. 

In the meantime, Canadian Imperial Financial institution of Commerce and JP Morgan Chase Financial institution, N.A. will act as co-lead arrangers and joint bookrunners, per the announcement. Each banks have offered commitments for $3.3 billion in senior unsecured non-revolving time period loans.

“The becoming a member of of our two corporations will create important and thrilling alternatives for our individuals, our purchasers and the communities wherein we stay and work,” Christopher Vincze, TRC’s CEO, mentioned within the information launch. “With TRC’s revolutionary, technology-oriented energy enterprise, underscored by a sophisticated use of digital, we’ll considerably strengthen WSP’s Energy & Vitality providing.”

For observers within the development trade, the transfer isn’t surprising — WSP has a history of aggressive M&A action, and made information in October for its rumored offer to buy Dallas-based Jacobs, one other giant participant within the development trade.

To that time, different acquisitions that WSP has accomplished prior to now 12 months embody Ricardo, a U.Okay.-based engineering consultancy, additionally in October, and life sciences consulting firm Lexica in June.

M&A is vital to the corporate’s technique, and L’Heureux mentioned as a lot throughout the firm’s Q3 earnings name on Nov. 6.

“I don’t assume anybody needs to be shocked as a result of I’m most likely the largest supporter and avid supporter of consolidation in our trade,” L’Heureux mentioned in reference to the M&A rumors. “I’m not shocked that our title is being thrown round with attainable rumors. Clearly, I’m not going to touch upon these rumors. I used to be a giant proponent of our mannequin 10 years in the past, and I proceed to be.”