WSP Global has agreed to acquire U.S. consulting firm Power Engineers for $2.4 billion.

Montreal-based WSP said the proposed purchase is expected to complement three core sectors: Transport and infrastructure, property and buildings; and earth and environment.

“The acquisition will mark a transformative step that will position us at the forefront of the energy transition,” said Alexandre L’Heureux, WSP’s president and CEO, in a news release.

“This opportunity brings forth a wealth of strategic benefits, including an expanded suite of innovative solutions for our clients and continuous professional growth opportunities for our employees.” commented Alexandre L’Heureux, president and CEO of WSP. 

The acquisition will be financed through approximately US$1.78 billion in new term loans. An equity raise of C$1 billion is also part of the deal. Private placements totalling C$500 million and a C$500-million bought-deal public offering are components of the equity raise.

Those offerings are scheduled to close August 19 and reduce the amounts drawn from the new term loans.

Singapore-based GIC, the Caisse de dépôt et placement du Québec (CDPQ), the British Columbia Investment Management Corporation, the Canada Pension Board (through a wholly-owned subsidiary) will participate in the equity raise. The four organizations are existing WSP shareholders.

Montreal-based CDPQ announced that the pension fund is investing an additional $158 million in WSP to enable the acquisition.

“Through this investment, CDPQ is reaffirming its long-standing commitment to WSP, allowing the company to carve out an influential position in the global power and energy industry and contribute to the transition under way,” said Kim Thomassin, CDPQ’s head of Quebec. “It’s in line with our strategy to support the international expansion of companies solidly anchored in Québec and to foster their sustainable growth.”

Hailey, Idaho-based Power has 4,000 employees based in company locations across North America.

Photo: Power Engineers