trending Market Intelligence /marketintelligence/en/news-insights/trending/vW1T8TP6rihfGf81MeOLZA2 content esgSubNav
In This List

UPDATE: Aecom to sell management services unit to PE firms

Blog

Insight Weekly: Unease roils markets; US likely to slip into recession; firms' cash ratios fall

Blog

Insight Weekly: Bank boards lag on gender parity; future of office in doubt; US LNG exports leap

Blog

Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Podcast

Street Talk | Episode 99 - Higher rates punish bond portfolios, weigh on bank M&A


UPDATE: Aecom to sell management services unit to PE firms

Affiliates of Lindsay Goldberg LLC and American Securities LLC agreed to acquire the management services business of Los Angeles-based engineering and design company Aecom for an undisclosed sum.

Bloomberg News reported that Aecom is selling the division for $2.4 billion.

In June, Aecom announced plans to spin off its management services division, which was criticized by activist investor Starboard Value LP. Starboard advised the company to conduct a strategic review of its assets.

Aecom operates through three segments: design and consulting services, construction services, and management services. Starboard had suggested that Aecom could also off-load its construction services business in addition to exploring an outright sale, the news outlet noted.

The division provides an array of services that include program and facilities management, environmental management, training, logistics, consulting, systems engineering and technical assistance, and systems integration and information technology. It serves the U.S. federal government, including the Department of Defense and the Department of Energy, as well as departments and agencies of allied governments, such as the U.K. Nuclear Decommissioning Authority and the U.K. Ministry of Defense.

The deal is expected to close by the first quarter of 2020, subject to customary closing conditions and regulatory approvals.

Cravath Swaine & Moore LLP is serving as legal adviser to Lindsay Goldberg and American Securities. RBC Capital Markets LLC and J.P. Morgan Securities LLC acted as financial advisers for both firms.