Aecom Reaches $2.4 Billion Deal for Management Services Unit

  • American Securities and Lindsay Goldberg to buy division
  • Company to use proceeds to pay down debt, fund share buyback

Jeff Smith, chief executive officer of Starboard Value LP, speaks during a Bloomberg Television interview on Feb. 5, 2019. 

Photographer: Christopher Goodney/Bloomberg
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Aecom, targeted by activist investor Starboard Value, agreed to sell its management services division to a consortium of private equity firms including Lindsay Goldberg and American Securities for $2.4 billion.

The Los Angeles-based firm, one of the world’s top engineering and design groups, plans to use the proceeds from the sale to reduce debt and to repurchase stock, it said in a statementBloomberg Terminal Monday, confirming an earlier report in Bloomberg News. The transaction is expected to close in the first half of fiscal year 2020, it said.