- WSP Global (WSP) has been given the go-ahead to acquire Mississauga-based engineering and consulting firm Golder Associates
- Shareholders of Enterra Holdings – the holding company of Golder – approved the deal at a special meeting on Wednesday
- WSP will pay approximately C$1.5 billion in cash for the acquisition, which is expected to be immediately accretive to the company’s earnings
- This amount will be funded by a now-completed $310 million placement, as well as a $1.2 billion bank financing
- WSP Global is currently up 1.02 per cent to $123.82 per share
WSP Global (WSP) has been given the go-ahead to acquire Mississauga-based engineering and consulting firm Golder Associates.
Shareholders of Enterra Holdings – the holding company of Golder – approved the deal at a special meeting on Wednesday, with 99.3 per cent of the votes cast in favour of the acquisition.
According to the terms of the agreement, which was announced on December 3 last year, WSP will pay a total of C$1.5 billion in cash to purchase employee-owned Golder, which has been working for 60 years in the geo-sciences sector.
Alexandre L’Heureux, President and CEO of WSP Global, said the transaction ideally positions the company to capitalise on the rapidly growing trends that are driving demand for environmental services and sustainable infrastructure development.
“This acquisition directly contributes to the realisation of the goals we laid out in our 2019-2021 Global Strategic Plan and is expected to contribute to both strategic growth and value creation for many years to come,” he added.
The purchase will be funded through a $1.2 billion bank financing with up to a four-year tenor, as well as a now-completed $310 million private placement.
WSP issued just over 3.33 million subscription receipts at a price of $92.98 each to British Columbia Investment Management Corporation and Singapore-based investment firm GIC, with the proceeds to be held in escrow pending the completion of the acquisition.
“Combining Golder’s industry-leading expertise with WSP’s impressive world-class platform and highly complementary services will provide long-term benefits for our people and help create greater value for our clients,” Dr. Hisham Mahmoud, Global President and CEO of Golder Associates, said in December.
“This view is echoed and confirmed by the overwhelming support of our Partners for the transaction,” he continued.
WSP Global is currently up 1.02 per cent to $123.82 per share at 11:36am EST.