August 29, 2019

WSP Global extends buying spree as it moves to overtake SNC-Lavalin

As reported on BNN Bloomberg, WSP Global Inc. (WSP:CT) is extending its shopping spree with the purchase of U.S. environmental consulting firm Ecology and Environment Inc. — WSP’s fifth acquisition this year.

The Montreal-based engineering company says it will pay US$65.1 million for E&E, which has 775 employees and generated US$75.5 million in net revenue last year.

The New York-based firm generates 80 per cent of its revenue in the United States via government contracts and the private sector. It also does business in Brazil, Peru, Chile and Ecuador.

E&E specializes in environmental impact assessments, site restoration and emergency planning and management. As of April, its backlog was estimated at about US$50 million.

WSP says the transaction, which is expected to receive regulatory approval, will likely close in the fourth quarter.

WSP has seen its stock rise 65 per cent over the past three years to hover above $71. Its market value sits at $7.49 billion, compared with $2.76 billion for its rival down the street in Montreal.

Keep reading on BNN Bloomberg