Leeds-based WYG accepts £43m US takeover bid

Leeds-based WYG, the international project management consultancy, said on Monday its board unanimously accepted a £43.4 million cash takeover offer of 55p per share from Pasadena, California-based engineering firm Tetra Tech.

In February, WYG’s shares collapsed after it warned in a trading update its operating profit would not meet market expectations and that it would not meet covenants.

Tetra Tech said WYG employs 1,600 staff primarily in the UK and Europe, delivering consulting and engineering services “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.”

Tetra Tech added: “The acquisition of 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, the acquisition enhances Tetra Tech’s business for international development supporting both the European Union and the United Kingdom’s Department for International Development.

Tetra Tech CEO Dan Batrack said: “WYG advances our strategy to add firms that support our position as 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 be able to provide an expanded scope of services to our customers and offer our combined staff even greater professional opportunities.”

Jeremy Beeton, WYG chairman, said: “Becoming part of Tetra Tech brings the benefits of scale and access to broader expertise across highly complementary geographies and client relationships.

“It also brings the operational infrastructure and financial strength to support WYG’s long-term ambitions, whilst we provide Tetra Tech with a strong platform for growth in the UK and Europe.

“We believe the combination will provide greater opportunities for our people and our clients as well as offering certainty of immediate value to our shareholders.”

Tetra Tech’s financial advisor is Perella Weinberg Partners and its legal advisor is Hogan Lovells International LLP. WYG’s financial advisor is N+1 Singer and its legal advisor is DLA Piper.

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.