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.
MMM, which generated CAD$264 million in net revenues in the fiscal year ended December 31, 2014, is a 2,000 employee private Canadian engineering services firm with broad expertise in transportation, infrastructure & environment, and buildings and a strong presence in the P3 market.
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.
The deal will allow WSP to strengthen its presence in Ontario and more specifically in the GTA, a market where WSP is looking to increase its market competitiveness. It provides WSP with the opportunity to increase its leading position in transportation, infrastructure, environment, buildings, resources and energy in its home market.
Additionally, the deal would bolster WSP's presence in the P3 market across Canada, the United States and around the world.
Commenting on the Acquisition, David Ackert, President and Chief Executive Officer of WSP Canada Inc. said,
"We are pleased to join forces with MMM, which is recognized as a highly successful firm nationally, with a particularly strong GTA market presence. The firm has made itself a name of technical expertise and operational excellence in the transportation, infrastructure & environment and buildings sectors. We also believe that this Acquisition provides a unique opportunity for our clients, employees and shareholders to benefit from MMM's deep experience in the P3 industry. This Acquisition perfectly fits within the priorities of our Canadian growth strategy, which is focused on becoming a top player across the country, in all the sectors in which we operate".
Hugo Blasutta, Chief Executive Officer of MMM added,
"This transaction supports the realisation of both companies' strategic aims and provides MMM a strong platform for continued growth both in Canada and internationally. We believe it will provide our employees and our clients with enhanced opportunities and we expect to achieve increased prominence globally in the areas in which we excel. Having been immensely proud to lead MMM for several years, we now look forward to working with the entire WSP team to deliver value to all stakeholders."