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WSP sought a merger as it was unable to expand quickly enough as a UK-listed company, its chief executive Chris Cole has said.

Cole said the acquisition of the company by Canadian consultant Genivar would allow the combined Toronto-listed firm to expand through acquisitions, particularly in the US and Australia.

He said it made sense to align WSP - which he founded in 1969 - to the 鈥減owerhouse鈥� of the Canadian economy rather than the 鈥渓anguishing鈥� UK market.

Genivar is less than two-thirds the size of WSP in terms of staff numbers and turnover but, at the time of the deal, had a market value of 拢516m - more than three times that of WSP, which was valued at just 拢166m.

Cole said: 鈥淭his transaction gives us the ability to grow because we鈥檝e got a new financial structure and new valuation. That鈥檚 what the Canadians bring to the party and that鈥檚 what the UK hasn鈥檛 got any more.

鈥淎 healthy business is a business that does a blend of organic growth and acquisitions and we haven鈥檛 made an acquisition since the liquidity crisis of 2008.鈥�

For more on the deal see assistant editor Joey Gardiner鈥檚

While Genivar gets 95% of its 拢400m revenues from Canada, WSP currently works from 200 offices in 30 different countries, with 1,000 staff in the US and 600 in Australia.

Cole said the company 鈥渘eeded to increase numbers鈥� in Australia. 鈥淲e have wanted to grow these businesses in Australia and the US, and now we have that opportunity.鈥�

Cole declined to say how much money the combined firm might have to spend, and added that the group would wait to let the 鈥渄ust settle鈥� following the merger before embarking upon further acquisitive expansion.

He said the deal was done in the 鈥渟pirit of a merger鈥�, despite the fact that Genivar acquired WSP, and claimed that the similar sizes of the firms
would help them to integrate.

He said: 鈥淚鈥檝e seen how companies get damaged [when they鈥檙e acquired by much larger firms] but that won鈥檛 happen because of the relative scales of the companies and because management remains.鈥�

He said: 鈥淚 believe WSP needed to be part of [the consolidation trend] to grow and that鈥檚 what we鈥檝e achieved.鈥�

Cole said there would be no job losses as there was 鈥渘o geographical overlap whatsoever鈥� between WSP and Genivar. WSP has 9,000 staff and aturnover of 拢717m, whereas Genivar has just 5,500 staff.

Cole added that he had considered the emotional aspect of selling another UK consultant to an overseas buyer as he was 鈥渙nly human鈥� but arguethe Genivar tie-up had provided an 鈥渆xceptional opportunity鈥�.

Cole said: 鈥淐anada was clearly an attraction - it鈥檚 probably the strongest economy in the Northern hemisphere. We鈥檙e fortunate to have another country - Sweden - as part of the group so we believe the group is now operating in the two strongest economies.鈥�

When completed the deal will see Genivar pay 拢278m to buy the entire issued share capital of WSP, with the combined group to be renamed WSP Genivar. Cole said the name change would come into effect 鈥渁s soon as is practical following completion of the merger鈥�.

Cole said the UK-based engineer 鈥渄idn鈥檛 open the door to anyone else鈥� and had been talking to Genivar about a deal for a total of six months, with serious negotiation taking place within the last three months, with serious negotiation taking place within the last three months.