Colliers To Acquire Canadian Engineering Firm In $475M Deal
Colliers agreed to acquire Englobe Corp., a Canadian engineering, environmental and inspection services firm, for $475M.
Englobe will rebrand as Colliers in 2025, according to a news release. Its senior leadership team and employee shareholders will remain shareholders in the business under Colliers' partnership model, the release says. Englobe employs 2,800 people.
Colliers, the Toronto-based commercial real estate services and investment management company that operates in 68 countries, was sitting on a $1B war chest for acquisitions, it said during an earnings call last month. It had then recently completed the acquisition of its affiliate in Philadelphia.
“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,” said Jay Hennick, global chairman and CEO of Colliers.
The transaction, in which Colliers will acquire a controlling interest for about $475M in cash, is expected to close in the third quarter. Once completed, recurring earnings from engineering, investment management and outsourcing will collectively represent 75% of Colliers’ total earnings, Hennick said in the release.
Englobe generated $340M of revenue in 2023, according to the release. The firm provides civil, building, geotechnical and environmental engineering, as well as material testing and consulting services to public and private sectors, primarily transportation, water, buildings and power.
“Joining a best-in-class professional services organization with a global brand and international platform will allow us to accelerate our growth going forward, as well as offer better services to our clients and more opportunities to our professionals,” Englobe President Mike Cormier said in the release. “Our team is more than excited to join the Colliers family.”
Englobe’s material management and beneficial reuse operations in the UK, France and Canada aren't included in the transaction.
Colliers zeroed in on growth and diversification about six years ago, according to its website. The firm in 2018 acquired 75% of the capital markets company Harrison Street.
In 2020, Colliers acquired a controlling interest in Dougherty, which is now Colliers Mortgage, as well as Maser Consulting, now Colliers Engineering & Design. Colliers spent a record $1B on acquisitions in 2022, with completed investments including Rockwood Capital, Versus Capital and Basalt Infrastructure, the website says.
