WSP Group PLC and Genivar Inc. have completed their merger, with Genivar UK buying WSP out at 435p per share.
The engineering and design consultancies will form a company with a combined revenue of £1.1bn and 14,500 employees working in 300 offices.
The firms will continue to operate under their respective brands until operational and financial integration is completed.
The sale of WSP shares values the company at £278m. The move is intended to capitalise on WSP’s high rise, bridge and rail expertise, and Genivar’s mining, natural resources and energy capability.
WSP is understood to have been hit in 2011 by falls in public expenditure, which impacted on its transport and infrastructure arm.
Chris Cole, executive chairman of the new entity and former WSP CEO, said the firms were “stronger together”, and that the merger would create “an extremely wide array of expertise, enabling us to pursue our joint growth strategy and broaden the range of opportunities for clients, employees and existing and potential partners.”
“As people businesses we have a complementary culture and shared values, and demonstrate the same entrepreneurial spirit and dedication, thriving on excellence, innovation and great working relationships.”
WSP UK managing director Paul Dollin said: “Genivar’s financial strength and desire for continued international growth makes them the ideal partner to support my aspirations to grow the UK business.”
“The merger will provide a platform to enhance our world class skills and exploit new geographic opportunities, accelerating our existing strategy to significantly increase UK market share over coming years.”
“Despite some commentators having written off the UK construction market, I believe there remain opportunities for those companies willing to adapt to the changing market.”