COMPANY NEWS AECOM acquires URS in US$6 billion mega-deal
15 July 2014
AECOM News Release
-
AECOM completes URS acquisition
- Engineering design consultant AECOM acquires rival URS in a mega-deal worth US$6 billion, one which cements the California-based company's position as market leader, twice as large as its nearest rival.
- Under the terms of the agreement AECOM, already the world's largest design and construction consultancy, acquires all remaining shares of URS, the world's third largest consultancy, for a combination of cash and stock worth $4 billion - the equivalent of US$56.31 per URS share, a 19% market premium. AECOM takes over US$2 billion of outstanding URS debt, to bring the combined company's total outstanding debt to US$5.2 billion. The new company reports that servicing this debt level is a key priority, but that it expects to make annual synergy savings of US$250 million per year by 2016.
- The combined company will have more than 95,000 employees in 150 countries, and registers combined 2013 calendar revenues of US$19 billion.
- "In one step we will dramatically accelerate our strategy of creating an integrated delivery platform with superior capabilities to design, build, finance and operate infrastructure assets around the world," said Michael Burke, AECOM President and CEO. "Clients, employees and stockholders of both companies will benefit from the opportunities created by these expanded capabilities, broad global reach in key growth markets, and economies of scale. We will have the ability to design and deliver major civil infrastructure projects in sectors such as transportation and water."
- Martin Koffel, Chairman and CEO of URS, said: "This is a compelling strategic combination that we believe will benefit our cients, stockholders and employees. We expect the combined company will be better positioned to compete for major, complex projects across a diverse range of markets."
- The Fortune 500 company will be headquartered in Los Angeles, California, where it becomes the largest publicly tradable firm in the city. It is expected that a presence will be maintained in San Francisco, where URS is currently headquartered.
- AECOM is involved in design of the US$7.2 billion East Side Access Project in New York City, and more recently was appointed to complete early feasibility studies of a possible subsea link between Malaysia and Singapore. It is also involved in design of the Aust$8.2 billion North West Rail Link, the Deep Rock Tunnel Connector in Indianapolis, USA, and the $50 billion High Speed 2 rail project in the UK, among many others.
- URS is involved in the UK Thames Tideway Tunnel project, as well as Crossrail in London. In 2010 it acquired London-based infrastructure and engineering company Scott Wilson Group.
-
URS acquires Scott Wilson Group – TunnelTalk, September 2010
|
|
|
|
|
Add your comment
- Thank you for taking the time to share your thoughts and comments. You share in the wider tunnelling community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language professional.
