Aecom sells civil construction unit to reduce risk
By Jenny LescohierJanuary 09, 2021
Los Angeles-based infrastructure consulting firm Aecom has completed the sale of its civil construction business, including contractor Shimmick Construction, to affiliates of Oroco Capital, a strategic infrastructure investor based in Bethesda, MD.
Aecom bought Shimmick for $175m in 2017; its sale price was not disclosed.
Having sold its power construction business in October, Aecom has now substantially exited all of its self-perform, at-risk construction businesses.
“The completion of the sale of the civil construction business marks a significant milestone in the transformation of our business profile to best position Aecom for long-term success,” said Troy Rudd, Aecom’s chief executive officer. “As global leaders in the infrastructure, environment and water markets, we are poised to capitalize on our clients’ increasing demand for our consulting services to transform cities, achieve bold ESG ambitions and better the communities we serve.
“With the progress we have made on our key strategic priorities, our advancement of our ‘Think and Act Globally’ strategy to drive growth and the momentum in the business, we remain committed to repurchasing shares in order to fully capitalize on the value creation opportunity.”
In February 2020, Aecom completed the sale of its management services business to two private equity firms, American Securities and Lindsay Goldberg, for $2.4 billion.
This latest move is part of Aecom’s strategy of improving its financial performance by exiting the general contracting market in favor of higher-margin consultancy.