US firm seals £43m deal to acquire listed consultancy group
A £43.3m deal to acquire Leeds-headquartered listed project management business WYG by Californian firm Tetra Tech has completed.
Tetra Tech announced in May it was to swoop for WYG. Today, the offer to acquire all of the outstanding shares of WYG through a UK court-approved scheme of arrangement has become effective and the transaction has closed.
Trading in WYG shares on the London Stock Exchange has been suspended and the outstanding shares of WYG are now owned by Tetra Tech.
WYG employs 1,600 staff in the UK and Europe, delivering consulting and engineering solutions for complex projects across key service areas including planning, water and environment, transport, infrastructure, the built environment, architecture, urban design, surveying, asset management, program management, and international development.
Dan Batrack, Tetra Tech Chairman and CEO, said: “The addition of WYG advances our strategy to be the premier global high-end consulting, engineering, and program management firm.
“WYG’s expertise in infrastructure and program management, as well as water and environmental services, enables us to deliver innovative solutions to support the UK’s infrastructure needs. Together, we will provide an expanded scope of services to our customers and offer our combined staff even greater professional opportunities.”
WYG expands Tetra Tech’s geographic presence and positions Tetra Tech as a leading global consulting, engineering and program management firm focused on water, environment and infrastructure.
In addition, WYG enhances Tetra Tech’s international development business both for the European Union and the United Kingdom’s Department for International Development. Collectively, its expanded presence in the UK provides a strong platform for growth in the UK and Europe.
Earlier this year WYG issued a profit warning saying that it expected it to below market expectations. The company’s share price took a 40% dive on the announcement.
It blamed “cautious business sentiment” and delays in investment decisions in the UK as a result of the Brexit stalemate. It has been forced to downgrade forecasts for its operating performance three times.
WYG announced at the start of this year that it will move into 3 Sovereign Square in Leeds city centre.
