Canadian engineering firm WSP Global Inc. WSP-T is bulking up once again, announcing a deal to buy U.S. power and energy service consultancy TRC Companies as it continues a relentless drive to build capability and consolidate the industry.
WSP will pay US$3.3-billion in cash for TRC and take on its 8,000 employees, becoming the largest engineering and design firm by revenue in the United States when the transaction closes, the Montreal-based company said in a statement Monday. TRC, based in Windsor, Conn., is currently owned by funds managed by private equity firm Warburg Pincus LLC.
The transaction is expected to be completed in the first quarter of 2026.
“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,” WSP chief executive officer Alexandre L’Heureux said in a statement. “Together, we are poised to deliver more complex projects and offer expanded end-to-end services to help solve our clients’ critical needs, from aging infrastructure to grid modernization and electrification.”
The acquisition is the latest in a wave of deals by WSP, as Mr. L’Heureux reshapes what was once a boutique engineering business into a company with a global reputation. Barely six months ago, WSP struck an agreement to take over British transport and energy firm Ricardo PLC and in October, 2024, finalized a deal to buy U.S. energy specialist Power Engineers for US$1.8-billion.
WSP said it expects the purchase to be accretive to its adjusted net earnings per share by a low- to mid-single percentage to start, with benefits climbing once cost savings are achieved. The company said adding TRC will drive scale across several strategic high-growth areas, including bolstering its digital offering.
WSP will sell stock to help fund the deal and take on new debt. It will raise at least $850-million in the share sale, including $732-million in a bought deal public offering run by a banking syndicate led by CIBC Capital Markets.
The company has also struck a private placement agreement with the Caisse de dépôt et placement du Québec for proceeds of about $118-million. The pension fund, which is already WSP’s single biggest shareholder, would increase its stake to about 14 per cent with the transaction.
TRC began in 1969 as The Research Corporation of New England, a meteorological and air quality analysis firm. Today, its work includes designing automation systems for energy company Avangrid Inc., and advising Eversource Energy, an electric utility, on the development of a utility-scale battery energy storage system for Cape Cod, Mass.
WSP is benefiting from several major trends in its business. Governments in the United States and other Western countries plan to invest billions of dollars in infrastructure over the next few years, tapping the kind of expertise WSP has sharpened over time. Those same countries are also trying to figure out how to decarbonize their economies in part through renewable energy, electricity system revamps and other projects – and WSP is booking that type of work as well.
The company, perhaps best known for its transportation projects and superskinny skyscrapers, recently won the largest contract in its history. WSP will provide its expertise for Britain’s Great Grid Upgrade, the biggest overhaul of the electricity network in England and Wales in decades.