WSP Global recently agreed to acquire TRC Cos., a power-focused engineering firm headquartered in Connecticut, for a purchase price of $3.3 billion.
Founded in 1969, TRC operates primarily in the United States and serves a wide range of end markets, including utilities, commercial and industrial, transportation, state and local, technology, and energy.
The transaction will be funded through a mix of debt and equity. Initially, it will be funded through committed acquisition financing of $3.3 billion senior unsecured nonrevolving term loans, while WSP is planning to raise $850 million in equity ($732 million in public offering and $118 million in private placement) to subsequently repay the committed acquisition financing.
Commenting on the transaction, Morningstar DBRS said the acquisition aligns with WSP’s growth strategy and adds meaningful exposure to the high-growth power market. The credit ratings agency expects minimal integration risk, given WSP's succe
