The company has entered into a definitive agreement for the sale of its management services business to affiliates of American Securities and Lindsay Goldberg for USD2.4bn.
Troy Rudd, Aecom’s chief financial officer, said: “With this transaction and expected record fourth quarter free cash flow, our balance sheet will be strengthened and we will have greater flexibility to deploy capital in the future.
“We ended fiscal 2019 with momentum across our higher-returning and lower-risk professional services businesses, supporting our expectation for 17% pro forma adjusted EBITDA growth at the mid-point of fiscal 2020 guidance.”
The transaction, which is expected to close in the first half of 2020, reflects an 11.6x multiple on expected fiscal 2019 adjusted EBITDA and a premium to Aecom’s overall valuation.
Goldman Sachs and DBO Partners served as financial advisors and Wachtell, Lipton, Rosen & Katz served as legal advisor.
Cravath, Swaine & Moore is serving as legal advisor to American Securities and Lindsay Goldberg.