Affiliates of private equity firms Lindsay Goldberg and American Securities have agreed to acquire AECOM’s (NYSE: ACM) management services business for $2.4B.
The Los Angeles-based engineering and construction firm said Monday its board of directors has cleared the transaction and that the company expects to complete the sale in the first half of fiscal 2020.
AECOM’s management services arm provides facility and program management, training, systems engineering, consulting, technical support, information technology, logistics, systems integration and environmental management support to U.S. federal agencies and allied governments. The unit is headquartered in Germantown, Md., and has over 25K employees. More than 10K of its personnel have security clearances.
John Vollmer, president of the AECOM MS group and a 2019 Wash100 winner, said the deal seeks to demonstrate the commitment and hard work of employees and the company’s ability to execute in mission-critical situations worldwide.
“American Securities and Lindsay Goldberg have impressive track records of building lasting value for their portfolio companies, particularly in the government services sector. I am confident that this world-class investor group has the resources and expertise that will enable us to accelerate our innovation and future growth,†added Vollmer, who will continue to oversee the business.
AECOM will use the proceeds from the sale to fund stock repurchases and debt reduction efforts. The purchase price reflects an 11.6x multiple on expected adjusted earnings before interest, tax, depreciation and amortization for fiscal 2019.
Goldman Sachs & Co. and DBO Partners serve as AECOM’s financial advisers while Wachtell, Lipton, Rosen & Katz advises the company on the deal’s legal aspect. Cravath, Swaine & Moore acts as legal adviser to Lindsay Goldberg and American Securities while RBC Capital Markets LLC and J.P. Morgan Securities LLC serve as financial advisers.
