Colliers to Acquire Leading Canadian Engineering Firm Englobe
Colliers (NASDAQ, TSX: CIGI) announced its acquisition of Englobe , a Canadian engineering firm, for approximately $475 million. Englobe, based in Laval, Québec, has 2,800 professionals providing civil, geotechnical, and environmental engineering services. In 2023, Englobe generated $340 million in revenue. The acquisition aims to expand Colliers' presence in Canada's engineering market. The transaction, excluding Englobe's operations in the UK, France, and Canada, will be finalized in Q3 2024. Englobe will rebrand as Colliers in 2025, with its senior leadership staying on board.
- Colliers will acquire Englobe for $475 million, expanding its Canadian engineering capabilities.
- Englobe generated $340 million in revenue in 2023.
- Englobe's senior leadership and employee shareholders will remain with the company.
- The acquisition aligns with Colliers' strategy to enhance its services and investment management.
- The transaction is expected to be finalized by Q3 2024.
- Englobe’s rebranding as Colliers in 2025 will strengthen brand recognition.
- Post-acquisition, 75% of Colliers' earnings will come from Engineering, Investment Management, and Outsourcing.
- Englobe's expertise in public sector relationships and infrastructure positions Colliers well in the market.
- The acquisition excludes Englobe's operations in the UK, France, and Canada.
- The transaction's completion is subject to customary closing conditions.
- A significant controlling interest will cost Colliers approximately $475 million in cash.
Insights
From a financial perspective, the acquisition of Englobe Corporation by Colliers for approximately
Investors can anticipate potential short-term expenses related to the integration but should also look forward to long-term benefits such as increased market share and enhanced service offerings. Given the expected closing in the third quarter of 2024, the financial performance for Colliers for the full year might reflect initial integration costs but should improve substantially post-2025 with the rebranding.
Rating: 1
This acquisition provides Colliers with a significant foothold in the Canadian engineering services market, which complements its existing project management services. Englobe's expertise in civil, geotechnical and environmental engineering, along with its strong public sector relationships, positions Colliers to better capitalize on industry growth drivers such as infrastructure development and environmental sustainability. The acquisition is expected to enhance Colliers’ competitive positioning by expanding its service portfolio and delivering integrated solutions in the robust Canadian market.
Long-term benefits include the ability to leverage Colliers' global platform to drive growth and offer more comprehensive services to clients, thus potentially attracting new business and increasing client retention. The decentralized operating style and focus on service excellence mentioned by both companies suggest an efficient integration process which should mitigate operational disruptions.
Rating: 1
Colliers expands engineering capabilities into Canada
TORONTO and LAVAL, June 03, 2024 (GLOBE NEWSWIRE) -- Global diversified professional services and investment management company, Colliers (NASDAQ, TSX: CIGI), announced today it has entered into a definitive agreement to acquire Englobe Corporation (“Englobe”), a leading Canadian multi-discipline engineering, environmental and inspection services firm. Englobe’s senior leadership team and employee shareholders will remain shareholders in the business under Colliers’ unique partnership model.
Headquartered in Laval, Québec, Englobe’s 2,800 professionals provide civil, buildings, geotechnical, and environmental engineering, material testing and related consulting services to public and private sector clients primarily in the transportation, water, buildings, and power end markets. In 2023, the business generated US
Under the terms of the transaction, Colliers will acquire a significant controlling interest for approximately US
“The acquisition of Englobe marks a significant entry for Colliers into the Canadian engineering marketplace and aligns perfectly with our strategy of enhancing our growing professional services and investment management company with high-value, resilient, and essential services,” said Jay Hennick, Global Chairman and Chief Executive Officer of Colliers. “Once the transaction is completed, recurring earnings from Engineering, Investment Management and Outsourcing will collectively represent about
“Building on our success in the U.S. and Australia, we look forward to entering the attractive Canadian engineering services market, a business that complements our current leadership in project management in Canada,” said Elias Mulamoottil, Co-Chief Investment Officer of Colliers. “Englobe’s national footprint, deep public sector relationships, and infrastructure expertise put Colliers Canada in an enviable position to capitalize on industry tailwinds that drive this stable and predictable business.”
“Colliers’ enterprising culture, decentralized operating style, focus on service excellence and employee engagement align well with Englobe’s key values, making Colliers the perfect partner for the next chapter of our journey,” said Mike Cormier, Englobe President. “Joining a best-in-class professional services organization with a global brand and international platform will allow us to accelerate our growth going forward, as well as offer better services to our clients and more opportunities to our professionals. Our team is more than excited to join the Colliers family.”
In connection with this transaction, Torys LLP acted as legal advisor to Colliers. AEC Advisors acted as financial advisor and Stikeman Elliott acted as legal advisors to Englobe.
Colliers Contacts
Elias Mulamoottil
Co-Chief Investment Officer
Christian Mayer
Chief Financial Officer
(416) 960-9500
About Colliers
Colliers is a leading diversified professional services and investment management company. With operations in 68 countries, our 19,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 29 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately
About Englobe
Headquartered in Laval, Englobe is a leading engineering and environmental services firm with a well-established network of offices and facilities across Canada. The Company’s 2,800+ team members include engineers, professionals, technicians and technical support staff. Englobe offers a broad suite of services from engineering, design and inspection to environmental consulting and remediation. It completes over 25,000 projects annually for public and private sector clients. For more information, visit https://www.englobecorp.com/.
FAQ
What is Colliers acquiring for $475 million?
When will the Colliers and Englobe transaction close?
What was Englobe's revenue in 2023?
How will Englobe be rebranded after the acquisition?
Will Englobe’s senior leadership remain after the acquisition?
What percentage of Colliers' total earnings will come from Engineering, Investment Management, and Outsourcing post-transaction?
Why is the Englobe acquisition significant for Colliers?
What types of services does Englobe provide?
