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 value, in response to 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 patrons going through advanced infrastructure and power challenges, WSP stated.
• “With TRC’s extremely complementary experience in energy supply, transmission, distribution, and advisory providers, our mixed providing will cowl the complete utility and infrastructure worth chain,” stated 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 frequent shares at $232.80 per every share, and roughly $118 million personal placement of frequent shares on the provide value 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 supplied 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 by which we stay and work,” Christopher Vincze, TRC’s CEO, stated within the information launch. “With TRC’s revolutionary, technology-oriented energy enterprise, underscored by a complicated use of digital, we’ll considerably strengthen WSP’s Energy & Power providing.”

For observers within the building business, the transfer isn’t stunning — 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 massive participant within the building business.

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 stated as a lot throughout the firm’s Q3 earnings name on Nov. 6.

“I don’t suppose anybody needs to be shocked as a result of I’m in all probability the most important supporter and avid supporter of consolidation in our business,” L’Heureux stated 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.”