WSP Strikes $1.8B Deal for Wood’s Environment & Infrastructure Business

Canada-based engineering services provider WSP Global has agreed to acquire John Wood Group’s environment and infrastructure business for approximately $1.81 billion in a transaction that would expand WSP’s earth and environment consulting practice in the U.S.

WSP said Wednesday it expects the transaction to close in the fourth quarter of 2022, subject to approval by Wood’s shareholders, separation of the E&I business through a reorganization, regulatory clearances and other customary closing conditions.

The acquisition of Wood’s E&I business will directly contribute to the realization of the ambitions we set out in our 2022-2024 Global Strategic Action Plan,” said Alexandre L’Heureux, president and CEO of WSP. 

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,” added L’Heureux.

The planned acquisition is expected to broaden WSP’s capability to deliver engineering and consulting services for assets across its property and buildings and transportation and infrastructure practices.

WSP will finance the deal with a new term credit facility worth $1.81 billion and expects the business to add approximately $830 million of net revenue to the company. Canadian Imperial Bank of Commerce serves as a sole bookrunner with regard to the bank financing.

WSP expects the transaction to be immediately accretive to its adjusted earnings per share and achieve annual cost synergies of about $30 million over a period of 24 months.

Perella Weinberg Partners acts as WSP’s exclusive financial adviser in the transaction. WSP’s legal advisers are Linklaters, Stikeman Elliott and Skadden, Arps, Slate, Meagher & Flom.

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