WSP diversifies to take on consultancies

“We’re the unknown giants,” says Mark Naysmith, UK & EMEA chief executive of WSP, fresh from signing off the acquisition of agency GL Hearn and another real estate business from Capita. He’s sort of joking, but not really. WSP is very well known globally. And although it no longer calls itself an engineering giant, the Montreal-based firm is known as being one of the biggest out there. But, over the past few years, the business has been on a journey of diversification, quietly turning itself into a multidisciplinary consultant serving the whole of the built environment. Call it an engineering giant at your peril. WSP is a pure play consultant, says Naysmith, and if you’re a Deloitte, a PwC or perhaps even a JLL or CBRE, watch out. WSP is building a business that can, will and is competing. WSP emerged this week as preferred buyer of Capita Real Estate and Infrastructure and GL Hearn from outsourcing giant Capita. It has paid £60m for the two businesses, which together will add around £87m of revenues to WSP and 1,000 employees. Most of those employees, some 850, fit perfectly into WSP’s existing business lines, which cover transport and infrastructure, property and building, and earth and environment. But the rest bring new skills to the business. And, says Naysmith, they are particularly attractive. Those new skills come through the GL Hearn business and cover business rates, valuation and occupier services. Naysmith says these will give WSP direct access to the C-Suite, a vital contact base in its ambition to grow and diversify the business. “Our strategy has been to diversify in the built environment,” says Naysmith. “We’re not moving away from engineering, but we want to complement that with advisory skills and offer that cradle-to-grave advice.” He adds that this latest acquisition isn’t the businesses starting that process from scratch, however. The firm already has some 2,500 people focused on planning in the business and, in 2019, bought specialist Indigo Planning. Within WSP’s diversification strategy is growing its advisory business in the UK to 40% of revenues. It currently accounts for 35% of UK income, says Naysmith, adding that that 5% growth equates to around C$100m (£64m), hinting that there are likely to be more acquisitions to come. “This is an exciting time for WSP as we grow in line with the ambitious targets set in our 2022-24 strategy,” he says. “The addition of the Capita Real Estate and Infrastructure and GL Hearn businesses to WSP’s portfolio will increase our expertise across strategically important growth markets, enhancing the delivery of current projects and accelerating our expansion into new sectors.” Alongside these two acquisitions from Capita, WSP last year bought Golder Associates, a global earth sciences and environmental consulting business for C$1.4bn, and is in the process of completing its acquisition of the environment and infrastructure business of John Wood Group for $1.8bn (£1.5bn). The Capita deal is expected to close within the next six to eight weeks with the businesses fully integrated into the WSP business by early 2023. To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews Photo: WSP