Two Private Equity Firms Buy Management Services Arm of AECOM

The AECOM deal is a win for activist hedge fund Starboard Value

Private equity firms Lindsay Goldberg and American Securities are buying assets from construction giant AECOM.

The target company issued a report this morning saying it agreed to a deal worth $2.4 billion for its management services division. That arm of the company provides logistics and technical services to the Federal government.

Its customers also include the Department of Defense and the Department of Energy. It also provides services to departments and agencies of allied governments. This list includes the U.K. Nuclear Decommissioning Authority and the U.K. Ministry of Defense. Its competitors include Jacobs Engineering Group and KBR.

“The Management Services business is a proven industry leader with distinctive expertise that plays a vital role in supporting governments around the world to execute programs of critical importance,” said Russell Triedman, Partner at Lindsay Goldberg. “We intend to leverage our extensive experience investing in the government services sector, including our prior investments in PAE and ECS Federal, and we look forward to working alongside management and American Securities to thoughtfully grow the Company and its capabilities both organically and through strategic transactions.”

Private Equity Firms Find Value in AECOM assets

Meanwhile, the sale is a win for activist hedge fund Starboard Value.  The hedge fund had further pushed the firm to conduct a strategic review of its assets. Starboard owned roughly 4% of the company in June.

At the time, the fund delivered a letter to AECOM Chairman and CEO Michael Burke. Starboard specifically mentioned its management services division as a potential source of value.

Finally, shares of AECOM stock (NYSE: ACM) added more than 6.4% during Monday’s trading session.

[Related: Hedge Fund Starboard Value Gets Papa John’s a New CEO]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.


Alt Insights

November 20, 2019

Prison For the Man Who Tried to Scam The Mooch

Prison For the Man Who Tried to Scam The Mooch

Latest Alternative Investment News

Bitcoin Plunges to Sub-$7000 Levels Before Recovering
November 22, 2019     Digital Assets, News

Bitcoin plummeted today after back-to-back crackdowns on virtual currencies by the Chinese Government. Yesterday, regulators in Shenzen, and today, in Shanghai, threatened to crack down on alleged illegal activities. The…

London Stock Exchange and PrimaryBid To Democratize Public Equity Offerings
November 22, 2019     FinTech, Latest News, News

The London Stock Exchange (LSE) has tied-up with fintech PrimaryBid to give retail investors access to share offerings. PrimaryBid’s internet-based investment platform will allow retail investors to digitally access share…

Ray Dalio Is Shorting the World
November 22, 2019     Hedge Funds, Investments, News

Hedge fund manager Ray Dalio is shoring the markets. The largest hedge fund in the world – Bridgewater Associates – has a $1.5 billion bet that the markets will fall…

A UK Legal Task Force Clarifies on Cryptoassets and Smart Contracts
November 22, 2019     Digital Assets, News

A UK Jurisdiction Task Force has issued a legal statement on cryptoassets and smart contracts. Issued under the aegis of the Law Tech Delivery Panel, the document is a result…