AECOM acquired by Lindsay Goldberg and American Securities for $2.4bn

January 2020 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

January 2020 Issue

In a transaction which creates a standalone services provider dedicated to helping governments solve their most pressing challenges, private equity (PE) firms Lindsay Goldberg and American Securities LLC are to acquire the management services business of AECOM for $2.4bn.

A leading contractor to the US federal government as well as departments and agencies of allied governments, AECOM provides an array of classified and unclassified services globally, both directly and through joint ventures or similar partner arrangements, including programme and facilities management, environmental management, training, logistics, consulting, systems engineering and technical assistance, and systems integration and information technology. Operating in 48 states and 28 countries, AECOM employs over 25,000 people.

“This transaction is a testament to our proven execution ability in complex, mission-critical situations globally, and the hard work and commitment of our talented employees,” said John C. Vollmer, group president of AECOM’s management services. “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.”

Following completion of the transaction, Mr Vollmer and the existing management team will continue to lead AECOM’s management services unit.

“AECOM’s management services business is a proven industry leader with distinctive expertise that plays a vital role in supporting governments around the world to execute programmes of critical importance,” said Russell Triedman, a partner at Lindsay Goldberg. “We intend to leverage our extensive experience investing in the government services sector and we look forward to working alongside American Securities to thoughtfully grow AECOM’s management services’ capabilities, both organically and through strategic transactions.”

Founded in 2001, Lindsay Goldberg is a PE firm that focuses on partnering with families, founders and management teams seeking to actively build their businesses. Its relationship-driven approach is centred upon a collaborative investment model and supported by its global network of affiliate partners.

“We are pleased to be acquiring AECOM’s management services business in partnership with Mr Vollmer and the rest of its outstanding management team,” added Ben Dickson, a managing director at American Securities. “It is a unique platform in government services with deep sector experience and expertise, and an unparalleled reputation and commitment to its customers.”

Based in New York with an office in Shanghai, American Securities is a leading US PE firm that invests in market-leading North American companies with annual revenues generally ranging from $200m to $2bn. American Securities and its affiliates have approximately $23bn under management.

Serving as legal adviser to Lindsay Goldberg and American Securities is Cravath, Swaine & Moore LLP. Financial advisers for both firms are RBC Capital Markets LLC and J.P. Morgan Securities LLC. Subject to customary closing conditions and regulatory approvals, the transaction is expected to close by the first quarter of 2020.

Mr Dickson concluded: “We look forward to growing AECOM’s management services alongside Lindsay Goldberg by continuing to provide its customers with the best capabilities and service available in the market.”

Fraser Tennant