AECOM‘s (NYSE: ACM) board of directors has approved the company’s plan to separate its management services business as a new publicly traded company that will primarily serve national government clients.
AECOM said Monday it expects to complete the spinoff in the second half of its 2020 fiscal year and retain John Vollmer, the segment’s president and a 2019 Wash100 winner, along with the current management team in the leadership of the future independent company.
Chief Operating Officer Randy Wotring will become chairman of the new firm’s board of directors.
The segment — which earned $3.7B in FY 2018 revenue — offers intelligence, operations and maintenance, cybersecurity, nuclear remediation and information technology services.
“As part of our continuing efforts to best position each business for long-term strategic and financial success, and in recognition of our current valuation that we believe does not fully reflect the value inherent across our enterprise, we identified an opportunity to unlock value through a separation of our two businesses,” said AECOM Chairman and CEO Michael Burke.
The transaction is to be effected via a pro-rata share distribution of common stock of the standalone company.
Wachtell, Lipton, Rosen & Katz serves as legal adviser on the separation process, which is subject to customary closing conditions that include the effectiveness of a registration statement with the Securities and Exchange Commission.