M&A: WSP Acquires Energy Transition Consultancy Power Engineers for $1.8 Billion

Global professional services firm WSP has acquired energy transition consultancy Power Engineers for $1.78 billion -- or valuation multiple of 12.5X based on expected post-deal synergies, the buyer said. Multiple financial firms are helping WSP to finance the deal.

This is M&A deal number 251 that Sustainable Tech Partner has covered so far in 2024. Related: See all M&A deals involving sustainability, climate tech and green IT services listed here.

WSP Acquires Power Engineers: Company Backgrounds

WSP Global, founded in 1865, is based in Montreal, Canada. The company provides professional services to companies in such sectors as transportation and infrastructure; earth and environment; property and buildings; and power, energy and industry. Key focus areas include ESG and sustainability consulting -- particularly in the renewable energy sector.

WSP has roughly 69,000 employees worldwide, including roughly 18,100 in the United States and Latin America. Revenues were CAD14.44 billion (US$10.51 billion) in 2023, including 7.3% organic growth.

Power Engineers, founded in 1976, is based in Hailey, Idaho. The engineering and environmental consulting firm assists customers with power delivery, power generation, renewables and storage, and more. Power Engineering has more 4,000 employees and 50 offices across North America.

Energy Consultancy M&A: Financing the Deal

To finance the Power Engineers acquisition, WSP partnered with multiple equity financing and private placement specialists. Moreover, CDPQ invested $158 million in WSP.

The M&A deal is subject to various closing conditions -- including approval by Power Engineers shareholders and U.S. regulatory approval.

Assuming the deal is consummated, Power Engineers President and COO Holger Peller will lead WSP's global P&E (Power and Energy) business. The P&E focus will complement WSP's Transport & Infrastructure, Property & Buildings, and Earth & Environment efforts, the buyer said.

The M&A deal is expected to deliver roughly US$25 million in cost synergies by the end of 2026, with 50% expected to be realized in 2025, WSP said. The buyer did not mention whether the synergies will involve layoffs or staff cuts.

WSP Buys Power Engineers: Executive Statements

In a prepared statement about the deal, WSP President and CEO Alexandre L’Heureux said: “The acquisition will mark a transformative step that will position us at the forefront of the energy transition. This opportunity brings forth a wealth of strategic benefits, including an expanded suite of innovative solutions for our clients and continuous professional growth opportunities for our employees. By uniting WSP’s extensive global network and POWER’s deep technical expertise, we are poised to provide exceptional solutions and service quality to foster significant advancements in the communities we serve. The trust of our shareholders and our commitment to excellence will empower us to influence the future of the energy sector as we plan to expand our reach and power a sustainable future across the globe.”

Added Power Engineers CEO Jim Haynes: “POWER and WSP truly are stronger together. By joining forces, we can supercharge our ability to help clients and communities around the world adapt to the changing energy landscape—and provide more opportunities for our team members to work on the most challenging projects. We’re looking forward to building success together with WSP.”

M&A Experience

This is the second renewable energy consultancy that WSP has acquired in 2024. The other deal involved buying 1A Ingenieros, a consulting firm that serves power and energy customers in Spain.