Cost and project management consultancy firm to expand AECOM’s portfolio of construction management services as well as its global footprint
LOS ANGELES (Aug. 5, 2010) — AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today that it has agreed to acquire Davis Langdon, a global cost and project management consultancy firm, in a transaction valued at US$324 million.
Davis Langdon provides cost and project management services, and specialist consultancy services, to clients around the world, with a strong presence in Africa, Australia and New Zealand, Europe, the Middle East and the United States. Davis Langdon’s 2,800 employees serve public- and private-sector clients in a variety of markets. Its counterpart in Asia, Davis Langdon & Seah, will remain independent, but will continue to work with AECOM’s Davis Langdon operations under an existing collaboration agreement.
“Davis Langdon’s strong cost and project management capabilities bolster our growing portfolio of construction management services,” said John M. Dionisio, AECOM president and chief executive officer. “Combined with our recent acquisition of Tishman Construction, we have significantly enhanced AECOM’s ability to meet the growing customer demand for turnkey, integrated services – and we have done so by adding two recognized global leaders in the industry to the AECOM enterprise.”
“The addition of Davis Langdon to AECOM reflects our continued commitment to execute on our stated strategy of growth and diversification, especially from a global footprint standpoint. Davis Langdon’s presence in growth markets positions us well to offer a comprehensive and global program management solution to our clients,” Dionisio said.
AECOM expects the transaction to be accretive to cash earnings per share (EPS) in fiscal year 2011. On a GAAP basis, the transaction is expected to be neutral to EPS in fiscal year 2011.
Davis Langdon has worked on many high-profile projects around the world, including the Tate Modern and the Eden Project in the United Kingdom;Estadio do Dragao in Portugal; Abu Dhabi International Airport; Grand Egyptian Museum in Cairo, Egypt; The Clem Jones Tunnel (CLEM7) in Brisbane, Australia; the Transbay Terminal in San Francisco, U.S.A.; the Gautrain Rapid Rail Link in Johannesburg, and the Green Point Stadium – newly built for the 2010 FIFA World Cup – in Cape Town, South Africa.
“Davis Langdon generated gross revenue of approximately US$430 million in calendar year 2009,” said Michael S. Burke, AECOM executive vice president and chief financial officer. “Davis Langdon has a long track record of strong cash flow generation and profitability. The addition of Davis Langdon to AECOM will enhance our higher-margin program management and construction management offering.”
“We are delighted to be joining AECOM,” said Rob Smith, chairman of Davis Langdon’s international board of directors and senior partner of its Europe and Middle East region. “Now, more than ever before, our clients are looking for integrated solutions and access to global knowledge. In partnership with AECOM, Davis Langdon will be well-positioned to deliver our front- end cost and project management, and consultancy services as part of a complete end-to-end offer. This will allow us to better serve our global customers while presenting new long-term growth opportunities for our employees. We look forward to further penetrating the markets we share with AECOM and leveraging their global platform to enter new growth markets.”
Under the terms of the agreement, Davis Langdon is expected to receive approximately 80 percent of the consideration in cash and 20 percent in AECOM common stock. The transaction is expected to close in October of 2010. The acquisition has been approved by Davis Langdon shareholders and partners, and is subject to customary closing conditions, including necessary regulatory and third party approvals.
AECOM will discuss this transaction and other company developments on its earnings conference call on Aug. 5, 2010. More information about the call is available online at http://investors.aecom.com.
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