Colliers International Group Inc. (CIGI, CIGI.TO), a prominent professional services and investment management firm, announced on Monday its commitment to acquire Englobe Corp. through a definitive agreement. Englobe Corp. is a distinguished Canadian firm specializing in multidisciplinary engineering, environmental, and inspection services.
As per the agreement, Colliers will secure a significant controlling stake in Englobe Corp. for approximately $475 million, to be paid in cash upon the completion of the transaction.
The acquisition is anticipated to finalize in the third quarter of 2024, pending standard closing conditions. Post-acquisition, the entity will be rebranded as Colliers in 2025. Additionally, Englobe’s senior leadership team and employee shareholders will continue their ownership in the business.
It is important to note that the acquisition deal will exclude Englobe’s material management and beneficial reuse operations in the UK, France, and Canada.
Englobe, headquartered in Laval, Quebec, employs 2,800 professionals and offers a comprehensive suite of services, including civil, buildings, geotechnical, and environmental engineering, alongside material testing and related consulting services. In 2023, Englobe reported revenues amounting to $340 million.
Jay Hennick, Global Chairman and CEO of Colliers, stated, “The acquisition of Englobe represents a pivotal introduction for Colliers into the Canadian engineering market and aligns seamlessly with our strategy to enhance our growing professional services and investment management portfolio with high-value, resilient, and essential services. Post-transaction, recurring earnings from Engineering, Investment Management, and Outsourcing will constitute about 75% of our total earnings.”
In terms of advisory roles in the transaction, Torys LLP served as the legal advisor to Colliers. AEC Advisors functioned as the financial advisor, and Stikeman Elliott served as legal advisors to Englobe.
