Colliers has entered into a definitive agreement to acquire Montreal-area engineering firm Englobe for US$475 million in cash.

Toronto-based Colliers announced the proposed acquisition in a news release. If all goes according to plan, Colliers will make the cash payment when the deal closes in the third quarter of 2024.

Laval, Que.-based Englobe’s 2,800 professionals provide civil, buildings, geotechnical, and environmental engineering, material testing and related consulting services to public and private sector clients primarily in the transportation, water, buildings, and power end markets.

According to the terms of the transaction, Colliers will acquire a “significant controlling interest” in the company. Englobe’s material management and beneficial reuse operations located in the U.K., France and Canada are not included in the proposed transaction.

“The acquisition of Englobe marks a significant entry for Colliers into the Canadian engineering marketplace and aligns perfectly with our strategy of enhancing our growing professional services and investment management company with high-value, resilient, and essential services,” said Jay Hennick, global chairman and CEO of Colliers.

“Once the transaction is completed, recurring earnings from engineering, investment management and outsourcing will collectively represent about 75% of our total earnings.”

With the acquisition, Colliers will expand its engineering capabilities into Canada, building on successes in the U.S. and Australia.

“Englobe’s national footprint, deep public sector relationships, and infrastructure expertise put Colliers Canada in an enviable position to capitalize on industry tailwinds that drive this stable and predictable business,” said Elias Mulamoottil, co-chief investment officer for Colliers.

Englobe will be rebranded as Colliers.

Photo: Englobe

Get Ready for Canada Kick-off

Connect CRE will hold its inaugural Canada Kick-off Event in Toronto on June 11. This will be Connect’s first commercial real estate industry conference in Canada. Panelists will include Syl Apps, managing director and co-country head for Hines; Lindsay Brand, chief investment officer at Concert Properties; Mark Kenney, CEO of Canadian Apartment Properties REIT; and, Marie-France Benoit, Avison Young’s director of Canadian market intelligence. Come and gain insights from industry leaders on such matters as buyer sentiment amid a lower interest-rate environment, cross-border commercial real estate transaction trends, and investors’ outlook for 2024 and beyond. Register today.