La Caisse Helps Finance WSP's US$3.3 Billion Acquisition of TRC
Canadian engineering firm WSP Global Inc. 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.
The Environment Journal also reports WSP to super charge energy services with TRC acquisition for $4.5B:
Montreal-based WSP Global Inc., one of the world’s leading professional service firms, has agreed to acquire TRC Companies, a U.S.-based engineering and construction firm.
The proposed acquisition, for a total cash purchase price of US$3.3 billion (approximately $4.5 billion based on the current exchange rate), marks a significant step on WSP’s journey to achieve its 2025-2027 Global Strategic Action Plan. The proposed acquisition will position WSP as the largest engineering and design firm in the U.S., supercharging its power and energy offering and enhancing its capabilities across the water, infrastructure, and environment sectors.
Based in Windsor, Connecticut, TRC has been a pioneer in adaptability and innovation for more than 55 years. TRC has established itself as a leader and recognized strategic advisor in the engineering and consulting industry, maintaining relationships with blue-chip utilities. Its team of approximately 8,000 employees offers an integrated approach that delivers long-term value for clients facing complex infrastructure and energy challenges.
The proposed Acquisition complements WSP’s offering in attractive market sectors, will expand its client relationships, and enhance its capabilities throughout the project lifecycle, notably with a portfolio of advisory practices tailored to utilities and program management expertise. It will also create potential cross-selling opportunities across power engineering, environmental solutions, and advisory services. At the same time, TRC will bring a shared commitment to innovation and operational excellence, with investments in digital solutions and a highly skilled workforce—further amplifying WSP’s ability to deliver integrated, future-forward solutions.
“The proposed Acquisition of TRC is a defining moment in the execution of WSP’s 2025-2027 Strategic Plan. Building on our track record of excellence and compounding financial performance, this strategic move will cement WSP as the Power & Energy consulting leader in the U.S. and globally. 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,” stated Alexandre L’Heureux, President and Chief Executive Officer of WSP.
“With TRC’s highly complementary expertise in power delivery, transmission, distribution, and advisory services, our combined offering will cover the entire utility and infrastructure value chain. 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.”
Also commenting on the acquisition, Christopher P. Vincze, Chairman and Chief Executive Officer of TRC, said: “The joining of our two firms will create significant and exciting opportunities for our people, our clients and the communities in which we live and work. With TRC’s innovative, technology-oriented power business, underscored by an advanced use of digital, we will significantly strengthen WSP’s Power & Energy offering. Additionally, TRC’s globally recognized Environmental & Infrastructure business, which is the seed from which TRC grew, will enhance WSP’s capabilities across Water, Infrastructure and Environment. Our combined skill sets will elevate us to better support, over the next decade and beyond, our people and planet as we face unprecedented growth of power needs on the back of ongoing electrification, the re-emergence of domestic manufacturing in the U.S. and the continued growth of infrastructure.”
Reflecting on their investment, Kim Thomassin, Executive Vice President and Head of Québec at La Caisse said: “With this investment, La Caisse once again demonstrates its ongoing commitment to WSP, helping to position the company as a leader in engineering and design in the United States and globally, while accelerating the development of its Energy offering, a sector with strong potential. This transaction is at the core of our strategy to support the international expansion of companies firmly rooted in Québec and to give them the means to achieve sustainable growth.”
The deal is expected to close in Q1 2026 pending regulatory approvals.
On Monday, La Caisse issued WSP's press release on its website:
WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”), one of the world’s leading professional services firms, proudly announces it has entered into an agreement to acquire TRC Companies (“TRC”), a premier U.S. Power & Energy brand delivering end-to-end solutions that support the full infrastructure lifecycle (the “Acquisition”), currently majority-owned by funds managed by Warburg Pincus LLC. The proposed Acquisition, for a total cash purchase price of US$3.3 billion (approximately $4.5 billion based on the exchange rate of $1.3762 USD/CAD as of December 15, 2025), marks a significant step on WSP’s journey to achieve its 2025-2027 Global Strategic Action Plan. The proposed Acquisition will position WSP as the largest engineering and design firm in the U.S., supercharging its Power & Energy offering and enhancing its capabilities across Water, Infrastructure, and Environment.
Based in Windsor, Connecticut, TRC has been a pioneer in adaptability and innovation for more than 55 years. TRC has established itself as a leader and recognized strategic advisor in the engineering and consulting industry, maintaining deep, long-term relationships with blue-chip utilities. Its team of approximately 8,000 employees offers an integrated approach that delivers long-term value for clients facing complex infrastructure and energy challenges.
The proposed Acquisition complements WSP’s offering in attractive market sectors, will expand its client relationships, and enhance its capabilities throughout the project lifecycle, notably with a portfolio of advisory practices tailored to utilities and program management expertise. It will also create potential cross-selling opportunities across power engineering, environmental solutions, and advisory services. At the same time, TRC will bring a shared commitment to innovation and operational excellence, with investments in digital solutions and a highly skilled workforce—further amplifying WSP’s ability to deliver integrated, future-forward solutions.
“The proposed Acquisition of TRC is a defining moment in the execution of WSP’s 2025-2027 Strategic Plan. Building on our track record of excellence and compounding financial performance, this strategic move will cement WSP as the Power & Energy consulting leader in the U.S. and globally. 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. With TRC's highly complementary expertise in power delivery, transmission, distribution, and advisory services, our combined offering will cover the entire utility and infrastructure value chain. 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,” commented Alexandre L’Heureux, President and Chief Executive Officer of WSP.
Also commenting on the Acquisition, Christopher P. Vincze, Chairman and Chief Executive Officer of TRC, said: “The joining of our two firms will create significant and exciting opportunities for our people, our clients and the communities in which we live and work. With TRC’s innovative, technology-oriented power business, underscored by an advanced use of digital, we will significantly strengthen WSP’s Power & Energy offering. Additionally, TRC’s globally recognized Environmental & Infrastructure business, which is the seed from which TRC grew, will enhance WSP’s capabilities across Water, Infrastructure and Environment. Our combined skill sets will elevate us to better support, over the next decade and beyond, our people and planet as we face unprecedented growth of power needs on the back of ongoing electrification, the re-emergence of domestic manufacturing in the U.S. and the continued growth of infrastructure. We were an early pioneer in the utility sector and continue to be a trusted thought partner, working to create, implement and manage complex strategies and programs to meet the country’s power needs. TRC’s people continue to be passionate about making the world a better place, and this next chapter will allow us to come together with WSP in a very exciting way to further that goal.”
Reflecting on their investment, Kim Thomassin, Executive Vice President and Head of Québec at La Caisse said: “With this investment, La Caisse once again demonstrates its ongoing commitment to WSP, helping to position the company as a leader in engineering and design in the United States and globally, while accelerating the development of its Energy offering, a sector with strong potential. This transaction is at the core of our strategy to support the international expansion of companies firmly rooted in Québec and to give them the means to achieve sustainable growth.”
FINANCIAL HIGHLIGHTS
- Proposed Acquisition of TRC for a total cash purchase price of US$3.3 billion (approximately $4.5 billion based on the exchange rate of $1.3762 USD/CAD as of December 15, 2025).
- Acquisition price represents 14.5x TRC’s Pre-IFRS 16 CY2026E Adjusted EBITDA pre-synergies and 12.5x after including run-rate synergies. (TRC’s Pre-IFRS 16 Adjusted EBITDA and earnings before net interest and income tax for the financial year ended June 30, 2025 were approximately US$192.3 million ($268.5 million) and US$87.5 million ($122.1 million), respectively).
- Expected to be low-to-mid single-digit percentage accretive to WSP’s adjusted net earnings per share before synergies. WSP expects 2027 Accretion (as defined below) to be high single-digit percentage accretive once cost synergies are fully realized (WSP’s basic net earnings per share attributable to shareholders and adjusted net earnings per share were $5.40 and $8.05 respectively, for the financial year ended December 31, 2024).2,9
- Expected cost synergies to exceed 3% of TRC’s net revenues for the financial year ended June 30, 20257, plus potential cross-selling revenue synergy opportunities in alignment with our POWER Engineers experience (TRC's net revenues and revenues for the financial year ended June 30, 2025 were approximately US$1,192.2 million and US$1,498.9 million, respectively).8
- Transaction to be financed with US$3.3 billion of Committed Acquisition Financing (as defined below).
- Estimated pro forma Net Debt to Adjusted EBITDA ratio6 of ~2.4x upon closing of the Acquisition with the expectation to return to below 2.0x within 12 months6 (WSP's net debt to adjusted EBITDA ratio for the trailing twelve-month period ended September 27, 2025 was 1.4x and adjusted EBITDA and earnings before net financing expense and income taxes for the same period were approximately $2,501.4 million and $1,481.0 million, respectively).
- Equity raise of approximately $850 million: $732 million bought deal public offering and approximately $118 million private placement of common shares of WSP (“Common Shares”) expected to close on or about December 22, 2025, with a corresponding reduction of the amounts drawn from the Committed Acquisition Financing. WSP may also opportunistically access debt capital markets to repay a further portion of the Committed Acquisition Financing should market conditions be favourable.
Take the time to read full press release here as it's long.
So, La Caisse struck a private placement agreement with WSP for $118-million to help it acquire TRC, a recognized power and energy leader and strategic advisor in the engineering and consulting industry, maintaining relationships with blue-chip utilities.
With this private placement, La Caisse which is already WSP’s single biggest shareholder, will increase its stake to about 14%.
It's fair to say WSP is one of the biggest and best investments in La Caisse's massive Quebec portfolio.
Led by CEO Alexandre L’Heureux, WSP is Quebec's most prolific acquirer, making a series of strategic acquisitions to cement its position as a Canadian and now global leader.
This acquisition of TRC Companies is by far its biggest acquisition, it's highly complementary and catapults WSP into a leading global advisory and engineering firm, helping them expand end-to-end services to address their clients’ critical needs, from aging infrastructure to grid modernization and electrification.
It will also create potential cross-selling opportunities across power engineering, environmental solutions, and advisory services.
Just a smart strategy for an engineering powerhouse and I'm certain the merger will benefit WSP, TRC, its clients and its investors over the long run.
Over the past 5 years, shares of WSP have doubled and while they will need to sell shares and raise debt to make this acquisition happen, I'm quite confident this will remain a great long-term investment:
Having La Caisse as a backer helps but the company has delivered on its strategic plan and investors have rewarded it.
Lastly, Kim Thomassin, Executive Vice President and Head of Québec at La Caisse posted something on LinkedIn going over how her team once again helped deliver the organization's dual mandate over the past year (I translated it on LinkedIn for my readers):
Take the time to go over the post here as it's interactive and contains key highlights.
Let me also take the time to wish Kim and the entire team at La Caisse happy holidays and much success in the new year.
Below, Alexandre J. L'Heureux, CEO of WSP Global, joins BNN Bloomberg to discuss the company's acquisition of TRC Companies. Take the time to listen to this interview, he's excellent and explains very well why this is a great acquisition for the company.
"There's a lot of work (in the electrical area) and we expect a lot of work over the next decade."
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