Caisse and CPPIB build on investments in engineering and design services firm

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Future building construction engineering project. © pitinan /123RF Stock PhotosThe Caisse de dépôt et placement du Québec and the Canada Pension Plan Investment Board are investing in WSP Global Inc., an engineering and design services firm, through a private placement of common shares.

The Caisse is set to buy about $44 million of common shares in aggregate, while a subsidiary of the CPPIB is purchasing about $20 million. These investments build on previous investments by both pension funds in WSP.

“This additional investment is a continuation of our partnership with WSP,” said Kim Thomassin, executive vice-president and head of Quebec investments and stewardship investing at the Caisse, in a press release. “In keeping with our long-term approach, we have built a strong relationship with WSP over the last decade and we look forward to supporting the company in the accomplishment of its strategic ambitions.”

WSP aims to use the fresh capital to contribute to general company operations, as well as to fund future acquisition opportunities.

“We are pleased to support WSP in its pursuit of new growth opportunities,” said Deborah Orida, senior managing director and global head of active equities at the CPPIB. “This private placement builds on our nearly decade-long investment in the company, contributing to our strategy to be a cornerstone minority shareholder in public companies where we can meaningfully contribute to their growth.”

In addition to the private placements with the Caisse and the CPPIB, WSP is raising further funds through a public offering of common shares. For the public offering, it has entered an agreement with CIBC Captial Markets, National Bank Financial Inc. and TD Securities Inc. who are acting as joint bookrunners on behalf of a syndicate of underwriters that will be purchasing the shares at $86.00 per share, totalling $437 million.

The issuance of the shares in both the public offering and private placement is subject to customary approvals.

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