Colliers to Acquire Englobe Corporation in Strategic Move into Canadian Engineering Market

📅 2 weeks ago 🏷️ Englobe Corporation

Colliers announces its acquisition of Englobe Corporation, marking a significant expansion into the Canadian engineering sector with an investment of approximately $475 million.

On June 3, 2024, Colliers, a global diversified professional services and investment management firm, revealed its plans to acquire Englobe Corporation, a prominent Canadian multi-discipline engineering, environmental, and inspection services company. The acquisition agreement underscores Colliers' strategic entry into the Canadian engineering landscape, which is expected to enhance its portfolio of professional services and investment management. Englobe, headquartered in Laval, Quebec, employs around 2,800 professionals who deliver a variety of services, including civil, buildings, geotechnical and environmental engineering, material testing, and consulting to both public and private sector clients. In the previous year, Englobe reported revenues of approximately US$340 million. The acquisition will take place for a controlling interest valued at around US$475 million in cash at closing. However, it is important to note that Englobe's Organics and Soil Treatment Centre operations in Canada, along with its international operations in the UK and France, will not be included in this deal. The transaction is subject to customary closing conditions and is anticipated to finalize in the third quarter of 2024. Jay Hennick, the Global Chairman and CEO of Colliers, expressed that this acquisition represents a significant milestone for Colliers as it penetrates the Canadian engineering market. He stated that the acquisition aligns with Colliers' strategy to enhance its offerings with essential services that are high-value and resilient. Once finalized, it is expected that earnings from Engineering, Investment Management, and Outsourcing will comprise approximately 75% of Colliers' total earnings. Elias Mulamoottil, Co-Chief Investment Officer at Colliers, noted that the acquisition builds on their successes in the U.S. and Australia and positions Colliers favorably within the Canadian engineering services market, which is characterized by few large competitors. Englobe's established national presence, strong public sector relationships, and infrastructure expertise are anticipated to provide Colliers Canada with substantial opportunities to leverage industry growth trends. Mike Cormier, President of Englobe, conveyed enthusiasm about the partnership, stating that joining Colliers would facilitate accelerated growth and enhanced service offerings for their clients, benefiting both their professionals and overall business trajectory. The legal advisory for Colliers was provided by Torys LLP, while AEC Advisors acted as the financial advisor, and Stikeman Elliott served as legal advisors for Englobe. The strategic move exemplifies Colliers' commitment to expanding its service capabilities and solidifying its presence in the engineering sector in Canada.

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