US engineering consultancy Tetra Tech has made an all cash offer for UK consultant WYG.
The WYG board is expected to recommend its that shareholders vote in favour of the move, which has valued the company at £43M.
Tetra Tech is offering shareholders 55p per share, a 244% premium to the last closing price of WYG plc shares which was 16p.
WYG’s portfolio of work includes sustainable housing, restoration works and large scale civils projects, notably the redevelopment of Sheffield’s children’s hospital and the Royal Birmingham Conservatoire.
The combined group will allow Tetra Tech to break into UK and European markets including water, environmental, sustainable infrastructure.
WYG non-executive chairman Jeremy Beeton said the board fully supported the deal. “The WYG Board and I unanimously recommend the offer from Tetra Tech,” he said.
“Becoming part of the Tetra Tech Group enables benefits of scale and access to expertise across highly complementary geographies and client relationships, and brings operational infrastructure and financial strength to support WYG’s long term growth ambitions.”
Tetra Tech chairman and chief executive Dan Batrack added: “WYG’s expertise in infrastructure and project 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.”
The acquisition is expected to be completed in July.
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