Global engineering giant WSP said it is set to acquire leading US professional services consultancy Louis Berger in a deal worth $400 million.

With this move, Berger Group Holdings, the parent company of the group of companies doing business under the umbrella name of Louis Berger will add 5,000 people to WSP’s workforce, predominantly increasing its US footprint and also broadening the group’s presence in Europe - mainly Spain and France - as well as the Middle East and Latin America.

The deal amount will be financed by an underwritten term loan from Canadian Imperial Bank of Commerce (CIBC), as sole lead arranger and sole bookrunner, said a statement from WSP.

With its US operations representing approximately 70 per cent of its 2018 net revenues (excluding disaster response revenues), Louis Berger’s portfolio includes some of the most iconic landmarks in the US, such as the Lincoln Memorial Reflecting Pool, the Statue of Liberty, the George Washington Bridge and the World Trade Center and most recently has been providing emergency management services for temporary power in Puerto Rico since Hurricane Maria.

It was also selected, as part of a joint venture, to provide project management services to build Doha’s first metro and supervise construction of three World Cup stadiums ahead of the Fifa 2022 World Cup, said the company in a statement.

In connection with the US compliance DOJ monitorship of its international divisions instituted in 2015 (which monitorship has been terminated), Louis Berger had undertaken the restructuring of its international operations.

WSP said it intends to pursue this restructuring and expects to incur approximately $50 million in one-time integration and restructuring costs in the coming years, it added.

On the new deal, WSP President and CEO Alexandre L’Heureux said: "We are pleased by the opportunity to have Louis Berger join WSP. The company is recognized for its expertise in sectors and services that WSP had targeted for growth, including water, environment (including emergency management) and transportation (including ports and marine), as well as master planning."

"This acquisition will also enable us to increase our presence in geographies we have previously targeted for growth, such as Continental Europe. Lastly, it will increase our exposure to the US Federal sector since Louis Berger has developed expertise and built experience in governmental contracts (including federal military and economic and institutional development)," noted Heureux.

“We will focus on integrating US operations and other regions that have proven to be drivers of growth, while pursuing the international restructuring Louis Berger had started,” he added.

Lauding the merger, Louis Berger CEO Jim Stamatis said: "I am very pleased about the prospect of joining WSP, as our values and strategies are aligned and our operations are complementary. This will create new opportunities for our employees and clients."

"WSP and Louis Berger are known to each other as we have pursued and won many projects together and as a result, we feel very comfortable in the strategic and cultural fit as we join together. As we have just completed our monitorship with the US Government, our most successful year in the company’s history, and continued simplification and restructuring of our operations, this presented an optimal time for us to transition to a new chapter in our evolution," he added.-TradeArabia News Service