La Caisse supports SNC-Lavalin’s global expansion projects
$1.9-billion investment for the acquisition of WS Atkins
Montréal, April 20, 2017 – Caisse de dépôt et placement du Québec announced today a $1.9-billion investment, in the form of debt and equity, to support SNC-Lavalin’s global expansion projects. Earlier today, the company submitted a firm offer to acquire all the share capital of WS Atkins, a leading British design, engineering and project management consulting firm.
As part of the proposed transaction, la Caisse’s investment will be carried out in the form of a loan of $1.5 billion, secured by the value and cash flows of SNC-Lavalin’s interest in the Highway 407 ETR project. La Caisse will also acquire $400 million of equity.
“As a long-term partner, la Caisse has worked with the company for several years and continues to do so today, as it plans to complete the largest acquisition in its history. This transaction has the potential to transform SNC-Lavalin into one of the leading engineering consulting firms in the world. The acquisition will strengthen the company’s position in high-growth market segments and industries, in addition to enhancing its presence in the European market,” said Michael Sabia, President and Chief Executive Officer of la Caisse.
“More than three quarters of la Caisse’s investment is in the form of a loan backed by a very high-quality asset – Highway 407 – in addition to $400 million of equity financing. In other words, this is a well-balanced and highly attractive investment for our clients. While offering continued financial flexibility to SNC-Lavalin, the structure of la Caisse’s financing helps protect its capital and allows it to benefit from the future performance of the company, which is now even better positioned thanks to this acquisition,” added Mr. Sabia.
The engineering sector in Québec and Montréal stands out in global markets. Québec-based engineering consulting firms are among the best in their industry and this new investment by la Caisse reflects its commitment to continue to support their growth.
The news release on the firm offer submitted today by SNC-Lavalin is available on its website at www.snclavalin.com/en/.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2016, it held $270.7 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
- 30 -