WSP expands with $275m Calibre deal

Canadian engineering giant WSP Global will more than double the size of its WA operation to 1,300 people after agreeing to buy most of Calibre Group’s business.

The $275 million deal effectively brings an end to Calibre as an independent business, 20 years after it was founded in Perth by Ray Munro, Jack Rowley and David Walker.

Calibre was listed on the ASX for three years before delisting in 2015 when it ran into financial challenges.

WSP is buying Calibre’s resources, rail, renewables and rehabilitation business, known as Calibre Professional Services One Pty Ltd, and its subsidiary, Xstract Mining Consultants.

It will gain 800 people as a result of the purchase, lifting the firm’s Australian headcount to around 6,000, including approximately 1,300 in Western Australia.

This will make WSP the second largest engineering firm in WA (after Worley) and the largest environmental consulting firm in the state, according to Business News' Data & Insights.

For Calibre, this deal follows last year’s sale of its built environment division, which employed about 400 people.

It also follows the 2018 sale of its subsidiary G&S Engineering Services.

Calibre's web site stated the group had a total of 1300 staff, which implies the two recent sales have left the company with with no major operations.

For WSP, the purchase adds to a string of acquisitions over the past two years.

International acquisitions have included environmental consulting firm Golder Associates and the environment and infrastructure business of John Wood Group plc.

Locally, WSP Australia bought Wesfarmers subsidiary Greencap.

WSP said the addition of Calibre’s mining advisory and consulting expertise will position the group to seize significant opportunities related to mine closure and rehabilitation as well as water management.

“This transaction will further position WSP to play a leading role in assisting with the green transition of the mining industry in Australia and globally,” WSP’s president and CEO Alexandre L’Heureux said.

“Our combined business will further increase our technical capabilities and provide opportunities to serve as the partner of choice for mining companies with strong ESG commitments.”

Calibre managing director Peter Massey said: “We are immensely proud of the success of the Calibre business over the last 20 years and our reputation in the markets in which we operate”.

“We are confident that WSP is the right partner, who can bring their global reach and expertise to provide new opportunities for our clients and employees,” he added.

The deal is anticipated to close in the second quarter of 2023.

Calibre Group was advised by Greenhill and Ashurst throughout the transaction.

They also advised Calibre on last year’s sale of its built environment division to French consulting and engineering firm Egis.