Leading Canadian engineering firms, they’re just like us. When things are going well, they like to splurge on something expensive.
What happened: Canadian engineering giant WSP Global has agreed to purchase US engineering consulting firm Power Engineers for a cool $2.4 billion. The move further expands WSP’s footprint in the US, specifically in the realm of energy transition projects.
This is the first major acquisition WSP has made since its CEO told investors on its earnings call last month that the company was aiming to do larger M&A deals.
Why it matters: WSP has grown into one of Canada’s corporate crown jewels — last year, it was one of just four Canadian firms on TIME’s top 100 companies list. Shares are up ~180% over the past five years, with gains driven, in part, by an aggressive acquisition strategy.
WSP has also capitalized on the increase of green infrastructure contracts, working on projects like grid updates in New York and the UK, and light rail expansion in LA.
Yes, but: WSP’s reliance on acquisitions for growth is viewed as a red flag by some investors, including infamous short-seller Spruce Point Capital, which took a short position on the company in April.