Canadian engineering firm, WSP Global Inc. has announced a major deal to acquire U.S. power and energy service consultancy, TRC Companies, in a continued push to build capability and consolidate its position in the industry. This move is part of WSP’s strategy to expand its range of services, increase its market share, and emerge as a leader in the engineering and design sector.
WSP Global’s Acquisition of TRC Companies
According to a statement released by the Montreal-based company, WSP is set to pay a whopping US$3.3-billion in cash for TRC. With this transaction, WSP will take on TRC’s 8,000 employees, making it the largest engineering and design firm by revenue in the United States. TRC, which is currently owned by funds managed by private equity firm Warburg Pincus LLC, is headquartered in Windsor, Conn. The transaction is expected to be completed in the first quarter of 2026.
Strategic Positioning for Growth
Alexandre L’Heureux, WSP’s chief executive officer, has expressed optimism about the deal. He said, “Joining forces will position our business for accelerated organic growth and create an integrated platform with industry-leading capabilities in advisory, engineering, and program management.” He further added that the combined force of both companies will help deliver more complex projects and provide expanded end-to-end services to their clients. This will address critical needs ranging from aging infrastructure to grid modernization and electrification.
Wave of Deals by WSP
This acquisition is the latest in a series of deals by WSP as the company, initially a boutique engineering business, is reshaped into a global player. Notably, WSP had earlier reached an agreement to take over British transport and energy firm, Ricardo PLC, and in October 2024, completed a deal to buy U.S. energy specialist Power Engineers for US$1.8-billion.
Expected Benefits of the Acquisition
WSP expects that the purchase will be accretive to its adjusted net earnings per share by a low to mid-single percentage to start, with benefits expected to increase once cost savings are realized. The acquisition of TRC is expected to drive scale across several strategic high-growth areas, including a boost to WSP’s digital offering.
Funding the Deal
To fund the deal, WSP plans to sell stock and take on new debt. It aims to raise at least $850-million in the share sale, with $732-million expected to come from a bought deal public offering run by CIBC Capital Markets. In addition, WSP has also struck a private placement agreement with the Caisse de dépôt et placement du Québec for proceeds of about $118-million. Following the transaction, the pension fund, which is already WSP’s single biggest shareholder, will increase its stake to about 14 per cent.
TRC’s Journey and Expertise
TRC has come a long way since its inception in 1969 as The Research Corporation of New England, a meteorological and air quality analysis firm. Today, it designs automation systems for energy company Avangrid Inc., and advises Eversource Energy, an electric utility, on the development of a utility-scale battery energy storage system for Cape Cod, Mass.
Major Trends Benefiting WSP
WSP is reaping the benefits of several major trends in its business. Governments in the United States and other Western countries are planning to invest billions of dollars in infrastructure over the next few years, tapping into the kind of expertise that WSP has honed over time. WSP is also securing work in the renewable energy sector, electricity system revamps, and other projects as countries aim to decarbonize their economies.
The company, known for its transportation projects and skyscraper designs, recently won the largest contract in its history. The contract involves providing its expertise for Britain’s Great Grid Upgrade, which is the biggest overhaul of the electricity network in England and Wales in decades.
