Friday, July 07, 2017

AECOM to acquire Shimmick Construction

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AECOM is set to acquire Shimmick Construction. While the acquisition is subject to customary closing conditions, the companies expect to close in AECOM's fiscal fourth quarter.

AECOM says that Shimmick, "an established leader in the California and Western U.S. heavy civil construction market," has approximately 1,000 employees and a total backlog of approximately $1.35 billion that includes a wide portfolio of iconic infrastructure projects. Annually, AECOM says that Shimmick generates approximately $300 million of revenue and is responsible for put in place construction value1 of approximately $400 million. The enterprise value of the acquisition is $175 million and the transaction is expected to be accretive to AECOM's adjusted EPS upon closing.

"Shimmick's civil infrastructure expertise provides an immediate complement to our leading North American design practice, further enhancing our integrated delivery offering as governments and their constituents have approved hundreds of billions of dollars to improve infrastructure across the Western U.S.," said Michael S. Burke, AECOM's chairman and chief executive officer. "As momentum across our Americas infrastructure markets builds, enhancing our construction capabilities is a critical next step to ensure we best capitalize on the tremendous opportunities in front of us."

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