WPS gets its hands on RPS for nearly a billion dollars

WSP Global, a Montreal-based consultancy, has announced that it has acquired British professional services firm RPS for 625 million pounds, or approximately 975 million Canadian dollars.

To fund this acquisition, WSP announced a public offering of shares totaling $400 million, as well as private placements totaling $400 million.

WSP said Caisse de depot et placement du Québec (CDPQ) is one of the private investors taking part in the $150 million venture.

“This transaction, which is part of our desire to support Quebec companies in their expansion projects, will allow the company to reassert its position as a world leader in consultancy in the environmental sector,” said Kim Thomassen, Senior Vice President and Director. Quebec from CDPQ.

The purchase amount awarded to RPS, a company with about 5,000 employees, represents about 15 times the company’s earnings before interest, taxes and amortization.

However, WSP is confident, thanks to the synergies between the two companies, that it can rapidly improve the profitability of the new acquisition. This should also complement the acquisitions of Capita Real Estate and Infrastructure Ltd, two Capita plc companies also located in the UK, which were revealed last week.

Once completed, the newly announced deals will increase our workforce to nearly 70,000 employees, including nearly 23,000 environmental experts globally. Alexander L. said: Saeed, President and CEO of WSP: “We are proud to create a leading ESG company with significant water and energy capabilities and a significant contribution to the transition to a greener, lower carbon world.”

The deal is expected to expire at the end of 2022, assuming it receives the green light from the authorities.