- WSP Global Inc. (WSP) has agreed to acquire the environment & infrastructure business of John Wood Group for $2.29 billion
- WSP provides advisory, engineering, and design services to clients in various industry sectors
- It is being added to WSP’s adjusted earnings per share, and 2024 accretion
- The acquisition is funded by a new fully committed US$1.81 billion term credit facility
- WSP Global Inc. (WSP) is up 4.98 per cent trading at $146.58 per share as of 4:08 p.m. ET
WSP Global (WSP) has agreed to acquire the environment & infrastructure business (E&I) of John Wood Group PLC for 2.29 billion.
WSP provides advisory, engineering, and design services to clients in the transportation, infrastructure, environment, building, power, energy, water, mining, and resources sectors.
This deal includes the net present value of US$200 million taken from a transaction-related tax benefit. It is being immediately added to WSP’s adjusted earnings per share, and 2024 accretion increasing to mid-teens once synergies are fully realized.
“WSP’s leading Global Earth & Environment Consultancy will now have approximately 20,000 experts globally with increased capabilities and reach, including key expertise in the high growth water sector and an expanded offering to Federal and government clients,” Alexandre L’Heureux, President and CEO of WSP, said.
“The platform will be increasingly diversified and resilient, with increased scale in geographies we have identified for growth such as the United States, where our E&E team will double in size,” he added.
WSP is funding the acquisition by a new fully committed US$1.81 billion term credit facility with various tenors of up to five years. This allows WSP to maintain its current liquidity.
For the deal to close, the companies still need the approval of Wood’s shareholders, completion by Wood of a group reorganization to achieve separation of the E&I business, and applicable regulatory conditions. It is expected to be completed during the fourth fiscal quarter of this year.
WSP Global Inc. (WSP) is up 4.98 per cent trading at $146.58 per share as of 4:08 p.m. ET.
