Colliers To Buy Canadian Engineering Firm Englobe In $475 Mln Cash Deal

(RTTNews) - Colliers International Group Inc. (CIGI, CIGI.TO), a diversified professional services and investment management company, announced Monday that it has entered into a definitive agreement to acquire Englobe Corp., a Canadian multi-discipline engineering, environmental and inspection services firm.

Under the deal terms, Colliers will buy a significant controlling interest for around $475 million in cash payable at closing.

The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. Following the acquisition, the business will be rebranded as Colliers in 2025 and its senior leadership team and employee shareholders will remain shareholders in the business.

The deal excludes Englobe's material management and beneficial reuse operations located in the UK, France and Canada.

Laval, Quebec -based Englobe provides civil, buildings, geotechnical, and environmental engineering, material testing and related consulting services with its 2,800 professionals. In 2023, the business generated $340 million of revenues.

Jay Hennick, Global Chairman and Chief Executive Officer of Colliers, said, "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. Once the transaction is completed, recurring earnings from Engineering, Investment Management and Outsourcing will collectively represent about 75% of our total earnings."

In the transaction, Torys LLP acted as legal advisor to Colliers. AEC Advisors acted as financial advisor and Stikeman Elliott acted as legal advisors to Englobe.