Global infrastructure firm AECOM announced that it has entered into a definitive agreement for the sale of its Management Services (MS) business to affiliates of American Securities LLC and Lindsay Goldberg for $2.405 billion.The transaction is expected to close in the first half of fiscal 2020.
AECOM Management Services is a leading contractor to the U.S. federal government and serves various departments and agencies, 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 Company provides an array of classified and unclassified services globally, both directly and through joint ventures or similar partner arrangements, including program and facilities management, environmental management, training, logistics, consulting, systems engineering and technical assistance, and systems integration and information technology.
Management Services employs roughly 25,000 people and operates across 48 states and 28 countries.
“We are extremely pleased with today’s transformative and value-enhancing announcement, which significantly accelerates our planned debt reduction and commitment to repurchase stock,” said Michael S. Burke, AECOM’s chairman and chief executive officer in a press release.
“The Management Services business is a proven industry leader with distinctive expertise that plays a vital role in supporting governments around the world to execute programs of critical importance,” said Russell Triedman, Partner at Lindsay Goldberg.
“We intend to leverage our extensive experience investing in the government services sector, including our prior investments in PAE and ECS Federal, and we look forward to working alongside management and American Securities to thoughtfully grow the Company and its capabilities both organically and through strategic transactions,” he added.
John C. Vollmer, president of AECOM’s Management Services group and the existing management team will continue to lead the business.
”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,” said John C. Vollmer, president of AECOM’s Management Services group in a release.