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Dive Brief:
- To end a 2025 with M&A news, Montreal-based WSP made a deal to buy TRC companiesa U.S.-based power and energy contractor, for a cash purchase price of $3.3 billion, according to a Dec. 15 press release.
- The move will help WSP expand its performance in key markets and expand its customer relationships, while leveraging TRC’s approximately 8,000 employees, based in Windsor, Conn., to deliver long-term value to customers facing complex energy and infrastructure challenges, WSP said.
- “With TRC’s highly complementary expertise in power supply, transmission, distribution and advisory services, our combined offering will cover the entire infrastructure and utilities value chain,” WSP CEO Alexandre L’Heureux said in the press release.
Diving knowledge:
The deal itself is financed through a public tender offer of $732 million at $232.80 per share and a private placement of approximately $118 million of common shares at the offering price to La Caisse, the investment company managed by the province of Quebec.
Meanwhile, Canadian Imperial Bank of Commerce and JP Morgan Chase Bank, NA will act as co-lead coordinators and joint book-runners, according to the announcement. Both banks have provided commitments for $3.3 billion in senior unsecured non-revolving term loans.
“The joining of our two companies will create important and exciting opportunities for our people, our customers and the communities in which we live and work,” Christopher Vincze, CEO of TRC, said in the press release. “With TRC’s innovative and technology-driven energy business, highlighted by an advanced use of digital, we will significantly strengthen WSP’s power and energy offering.”
To construction industry watchers, the move is no shocker: WSP has one history of aggressive M&A actionand made headlines in October for his Rumored offer to buy Dallas-based Jacobsanother major player in the construction sector.
Included to this point are other acquisitions that WSP has completed over the past year Ricardoa UK-based engineering consultancy, also in October, and life sciences consultancy Lexica in June
M&A is key to the company’s strategy, and L’Heureux said as much during the company’s third-quarter earnings call on Nov. 6.
“I don’t think anyone should be surprised because I’m probably the biggest advocate and proponent of consolidation in our industry,” L’Heureux told reference to M&A rumours. “I’m not surprised that our name is being bandied about with possible rumors. Obviously, I’m not going to comment on those rumors. I was a big supporter of our model 10 years ago and I continue to be.”
