WSP Global acquires kW Mission Critical Engineering
kW Mission Critical (“kW”), a $50 million mission critical MEP-focused firm had been engaged in informal M&A discussions with WSP for several months. WSP, one of the largest global AEC firms in the world, was seeking to significantly expand their mission critical practice, and as one of the largest pure mission critical firms, WSP identified kW as a key candidate for that expansion.
kW’s majority owners wanted to explore a potential transaction with WSP; however, the challenge was how would kW’s owners know that they were getting a market competitive valuation and structure in a deal with WSP, without going through an actual competitive process and soliciting comparable offers?
kW’s owners decided to engage AEC Advisors to assist in the exclusive negotiations with WSP and assess the market competitiveness of a potential offer. Our M&A experience and proprietary transaction data provided the necessary context to assess an offer from WSP on a standalone basis.
On the other side of the table, WSP was receptive to our thoughts on valuation, structure and other critical items, because of their familiarity with and respect for AEC Advisors. This helped to create constructive dialogue that ultimately led to a transaction.
In December 2020, kW and WSP agreed to terms and completed a transaction. Strategically, kW provided one of the largest U.S. mission critical platforms for WSP to build upon, while WSP’s global reach and vast resources enhanced kW’s ability to tap into new clients and geographies.
Today, WSP has one of the top 5 largest mission critical engineering and design practices in the U.S.