WSP Global Inc "WSP confirms expression of interest to acquire Arcadis" (Buy)

研报英文原文证据摘录

WSP Global Inc "WSP confirms expression of interest to acquire Arcadis" (Buy)

, we think WSP has been successful with Q1 2.24 2.21

Q2E 2.87 2.82

executing M&A, and this transaction would increase WSP's scale in key markets.

Q3E 3.29 3.26

Integration would be a key swing factor.

Q4E 3.22 3.19

UBS analysts covering Arcadis note that the deal could face some hurdles, given 12/26E 11.58 11.47

Arcadis' unique shareholder structure, potential antitrust concerns (in certain 12/27E 13.49 13.14

geographies and markets), and Arcadis' current turnaround plan. See this note for 12/28E 14.55 14.96

more details. Steven Fisher, CFA

Analyst

WSP disclosed that the combination would create cross-selling opportunities,

steven.fisher@ubs.com

more comprehensive solutions, scale, and operating leverage. Specifically, WSP +1-212-713 8634

sees opportunity to accelerate technological/AI innovation, expand its presence in

Natasha Brilliant key regions (NA, UK, Australia, Central Europe), and add capabilities in water,

advanced manufacturing, advisory, digital, and program management.

natasha.brilliant@ubs.com

+44-20-7567 0645

WSP discloses that the deal would be high-single-digit accretive to adj. EPS before

synergies, and mid teens with synergies. WSP assumes cost synergies would be Avinatan Jaroslawicz

achieved within 24 months of completing the acquisition. Given that there is no Analyst

agreement at the moment, we assume 2026 is not a relevant time period for avinatan.jaroslawicz@ubs.com

+1-212-713 1405

accretion. In prior relatively recent deals, WSP has expected cost synergies of ~3%

of NSR.

Highlights (C$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 14,437 16,167 18,285 21,629 23,076 24,018 24,989 25,738

EBIT (UBS) 1,415 1,679 2,099 2,562 2,798 2,936 3,119 3,206