MONTREAL — WSP Global Inc. is buying Ontario’s Golder Associates for about $1.5 billion, which the Quebec company says will result in the creation of the world’s leading environmental consulting firms.
The Montreal-based engineering services firm’s shares surged nearly 15 per cent to $111.17 in midday trading, down slightly from a record high set in early trading on the Toronto Stock Exchange.
WSP chief executive Alexandre L’Heureux says the deal 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.
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, he says.
The environment sector will account for about 25 per cent of WSP’s total annual revenues of $8 billion.
Founded in 1960, Mississauga, Ont., -based Golder provides engineering services in industries such as the environment, mining, oil and gas, and energy and infrastructure. It is present in 30 countries with 7,000 employees in 155 offices.
This report by The Canadian Press was first published Dec. 3, 2020
Companies in this story: (TSX:WSP)
The Canadian Press
Note to readers: This is a corrected story. An earlier version incorrectly stated the proportion of revenue that the environmental sector will account for at WSP.