WSP to Acquire Parsons Brinckerhoff for $502 Million
WSP Global Inc. announced that it has entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Balfour Beatty plc and certain of its subsidiaries (“Balfour Beatty”) in connection with the acquisition (the “Acquisition”) of all of the issued and outstanding capital stock of the entities comprising the business of Parsons Brinckerhoff Group Inc. (collectively, “Parsons Brinckerhoff”), the professional services division of Balfour Beatty, for an enterprise value of US$1,242,500,000 plus an additional consideration for cash retained by Parsons Brinckerhoff of up to US$110 million (the “Purchase Price”), subject to certain closing and post-closing adjustments.
The terms of the Acquisition have been approved by the boards of directors of both WSP and Balfour Beatty plc. The Acquisition, which remains subject to certain customary closing conditions, including approval by the shareholders of Balfour Beatty plc, approval by certain lenders to Balfour Beatty and receipt of applicable antitrust approvals, is expected to be completed in the fourth quarter of 2014 (the “Acquisition Closing Date”).
Headquartered in New York City, Parsons Brinckerhoff is a global professional services firm with a network of approximately 170 offices and nearly 13,500 employees on five continents. The firm is a premier infrastructure consultancy providing services in transportation, power, energy, community development, water, mining and environment segments.
WSP’s management’s (“Management”) strategic rationale for the Acquisition is underpinned by a strong alignment of both companies’ respective values and operating models while allowing the Corporation to meet most of its 2015 Global Strategic Plan objectives ahead of schedule, including objectives relating to net revenues and total number of employees. Since the companies possess complementary skills and serve complementary segments and geographies with limited overlap in operations, the Acquisition is also aligned with WSP’s growth strategy of:
- capitalizing on opportunities in countries where it has a strong and well-established presence, such as the UK;
- enhancing its position in industrialized regions where the Corporation is established but does not have a significant presence, such as the US and Australia;
- expanding its offerings and capabilities in its core segments, such as buildings and infrastructure, to increase its expertise and offerings worldwide; and
- developing the energy segment, while further growing its project and program management services offering.
Finally, Management believes that WSP and Parsons Brinckerhoff are aligned in terms of culture and corporate objectives as they are both pure-play professional services firms sharing similar values with respect to people, clients and teamwork.
GLOBAL AND REGIONAL OPPORTUNITIES
Management expects that the Acquisition will strengthen WSP’s presence in industrialized regions of the world and prudently increase its exposure within higher-growth emerging regions, while maintaining a good mix of projects awarded from the public and private sectors. In addition, the Acquisition is expected to enhance WSP’s leading position in the global buildings segment, position it as a key player in the transportation segment and strengthen its expertise in all of its other segments.
Read more via this press release.