"This transforms the company and puts WSP in a different stratosphere," chief executive
"Today we become the world's most important company in environmental and earth services."
The agreement announced Thursday positions WSP to capitalize on the rapidly growing trends in ESG (environment, society and governance) that is driving demand for environmental services and sustainable infrastructure development.
The deal comes as governments around the world consider ways to recover from the economic impact of COVID-19 and look at green initiatives like transit.
"The timing couldn't be better for WSP and a
The
After the deal closes, expected in the second quarter, 14,000 of WSP's 54,000 employees will be focused on accelerating the transition to green solutions.
The acquisition achieves a key plank of its strategic plan with the environment sector accounting for about 25 per cent of WSP's total annual revenues of
It also establishes relationships with investors GIC, one of the world's largest sovereign wealth funds and the
WSP will issue shares to GIC worth
Founded in 1960,
"Combining Golder’s industry-leading expertise with WSP’s impressive world-class platform and highly complementary services will provide long-term benefits for our people and help create greater value for our clients," stated Golder CEO
WSP says the transaction will immediately boost adjusted earnings and increase from there as about
Costs to realize these savings are not expected to exceed
The transaction must be approved by not less than 75 per cent of Golder shareholders at a special meeting to be held on
WSP will receive a termination fee of
Industry analysts welcomed the acquisition of a company that has 60 years experience in the geo-sciences sector, an engineering niche focused on earth and environmental conditions.
WSP's environmental sector becomes the second-largest after transportation and infrastructure at 47 per cent of revenues, and ahead of property and buildings at 21 per cent.
"We view the acquisition of Golder as a solid transaction in the right end-markets," he wrote in a report.
He said it increases WSP's exposure in
By
— With files from
This report by
Companies in this story: (TSX:WSP)
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