Cost and project management consultancy firm to expand AECOM's
portfolio of construction management services as well as its global
LOS ANGELES, Aug 05, 2010 (BUSINESS WIRE) --
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,"
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.
AECOM (NYSE: ACM) is a global provider of professional technical and
management support services to a broad range of markets, including
transportation, facilities, environmental, energy, water and government.
With approximately 46,000 employees around the world, AECOM is a leader
in all of the key markets that it serves. AECOM provides a blend of
global reach, local knowledge, innovation, and technical excellence in
delivering solutions that enhance and sustain the world's built,
natural, and social environments. A Fortune 500 company, AECOM
serves clients in more than 100 countries and had revenue of $6.3
billion during the 12-month period ended March 31, 2010. More
information on AECOM and its services can be found at www.aecom.com.
Forward-Looking Statements: All statements in this press release
other than statements of historical fact are "forward-looking
statements" for purposes of federal and state securities laws, including
any statements of plans for future operations or expected earnings and
revenue.Actual results could differ materially from those
projected or assumed in any of our forward-looking statements.Important
factors that could cause actual results to differ materially from our
forward-looking statements are set forth in our quarterly report on Form
10-Q for the fiscal quarter ended March 31, 2010, and our other reports
filed with the U.S. Securities and Exchange Commission.AECOM
does not intend, and undertakes no obligation, to update any
SOURCE: AECOM Technology Corporation
Paul Gennaro, 212-973-3167
SVP & Chief Communications Officer