WSP Announces Closing of MMM Acquisition
WSP Global Inc. (TSX:WSP) (“WSP” or the “Corporation”) is pleased to announce that it has completed its previously announced acquisition of MMM Group Limited (“MMM”), through a plan of arrangement. MMM, which has approximately 2,000 employees, is one of the largest privately-owned engineering consulting companies in Canada.
The purchase price of approximately $425 million was paid primarily in cash and by the issuance of WSP shares to MMM employees for an aggregate amount of $22,133,211 at a price of $42.25 per share. It was financed through a combination of:
- a $201 million public offering of common shares at a price of $42,25 per share ;
- a $144 million private placement with the Canada Pension Plan Investment Board and the Caisse de dépôt et placement du Québec, WSP’s two largest shareholders, at a price of $42.25 per share; and
- funds drawn under the Corporation’s current credit facilities
All customary closing conditions, including court, shareholder and applicable regulatory approvals, were met.
“I am delighted about this acquisition and that our two firms are joining forces,” said David Ackert, President and Chief Executive Officer of WSP in Canada. “The coming together of these two like-minded firms will enable us to pursue our growth strategy and strengthen our foundation across Canada by increasing our ability to deliver superior value to our clients, shareholders and employees.”
“We are pleased that our shareholders have expressed overwhelming support for this acquisition. On behalf of MMM’s Board and management, I would like to thank them for their invaluable support throughout this process,” said Hugo Blasutta, Chief Executive Officer of MMM. “As we join WSP, a firm with similar values to MMM and a complementary business model, we will have an opportunity to continue our journey of growth. We also look forward to providing additional value for our employees and clients through our enhanced expertise and expanded network”.
Founded in 1957, MMM is a multidisciplinary consulting firm creating vibrant and healthy communities through innovative planning, engineering, geomatics, and project management services. With more than 2,000 employees in 18 offices across seven provinces, MMM utilizes strong client relationships and deep industry knowledge to deliver cutting-edge, personalized, and practical solutions that help its clients seize opportunities, understand and address challenges, identify and manage risks, and navigate relevant regulatory systems.
WSP, through its acquisition of Parsons Brinckerhoff, is one of the world’s leading professional services firms in its industry, working with governments, businesses, architects and planners and providing integrated solutions across many disciplines. The firm provides services to transform the built environment and restore the natural environment, and its expertise ranges from environmental remediation to urban planning, from engineering iconic buildings to designing sustainable transport networks, and from developing the energy sources of the future to enabling new ways of extracting essential resources. It has approximately 34,000 employees, including engineers, technicians, scientists, architects, planners, surveyors and environmental specialists, as well as other design, program and construction management professionals, based in approximately 500 offices, across 40 countries, on 5 continents. www.wspgroup.com