WSP to acquire Power Engineers in US$1.78-billion deal
WSP, a Montreal-based design and engineering consultancy, has agreed to acquire Power Engineers, a Hailey, Idaho-based consulting engineering firm, for US$1.78 billion ($2.44 billion).
Founded in 1976, Power Engineers provides multidiscipline engineering, architecture, and program management services to prominent power utilities in North America. The firm has approximately 4,000 employees across 45+ offices in the US and Canada, including Canadian locations in Edmonton, Calgary, and Toronto.
WSP in a press release said the strategic move will help it expand its power and energy (P&E) sector services and positions it as “the preeminent pure-play global consulting firm for the world’s energy transition.”
The acquisition, which is slated to close in the fourth quarter, will significantly expand WSP’s US operations and grow the P&E sector to an estimated 20% of WSP’s pro forma revenues in the US.
“The acquisition will mark a transformative step that will position us at the forefront of the energy transition. 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,” said Alexandre L’Heureux, president and CEO of WSP.
L’Heureux last month said in a second-quarter earnings call that WSP is eyeing large acquisitions, with the CEO seeing growth opportunities in continental Europe, Australia, and the US.
WSP earlier this year acquired Communica, a boutique communications firm based in Calgary.
WSP’s major acquisitions in the last several years include RPS Group (2022, $975 million), John Wood Group's environmental consulting business (2022, $2.31 billion), and Golder (2020, $1.5 billion).
The firm also last year divested Louis Berger Services, a US-based operations and maintenance services division it acquired in 2018.
WSP has 69,300 professionals globally and annual revenue of $14.4 billion.
