The Los Angeles-based engineering and construction firmÂ said MondayÂ its board of directors has cleared the transaction and that the company expects to complete the saleÂ in the first half of fiscal 2020.
AECOMâs management services armÂ provides facilityÂ 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 aÂ 2019 Wash100Â winner, said the deal seeks to demonstrate the commitment and hard work of employees and the companyâs ability to execute in mission-critical situations worldwide.
âAmerican SecuritiesÂ andÂ Lindsay GoldbergÂ 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,â 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 multipleÂ on expected adjusted earnings before interest, tax, depreciation and amortizationÂ for fiscal 2019.
Goldman SachsÂ & Co. andÂ DBO PartnersÂ serve as AECOMâs financial advisersÂ while Wachtell, Lipton, Rosen & KatzÂ advises the company on the dealâs legal aspect.Â Cravath, Swaine & MooreÂ acts as legal adviser to Lindsay Goldberg andÂ American SecuritiesÂ while RBC Capital Markets LLC and J.P. Morgan Securities LLCÂ serve as financial advisers.