This investment is in connection with the announcement made by WSP to acquire MMM Group. Following the closing of the acquisition, WSP is expected to have approximately 8,500 employees (approximately 3,200 of which will be located in Ontario) and net revenues of approximately CAD$1 billion in Canada.
Under the terms of the agreement, WSP will pay an aggregate purchase price of CAD$425 million (US$321.8 million) subject to certain closing and post-closing adjustments. Shareholders of MMM may elect to receive part or all of the consideration in the form of shares of WSP.
Christian Dubé, Executive Vice-President at CDPQ, stated:
"This new investment by la Caisse is consistent with the business relationship we have built with WSP, a global firm well rooted in Québec, to support its growth strategy through acquisition. The acquisition of MMM Group will enable WSP to strengthen its presence in Canada's transportation and infrastructure sectors and further its expertise in PPPs, particularly in Ontario."
In addition to this new investment of CAD$62.5 million, CDPQ invested some CAD$420 million over the past four years to allow WSP to broaden its presence on all continents and consolidate its positioning in global markets.