Technical and management support services consultancy AECOM Technology Corporation has strengthened its global footprint with an agreement to acquire Davis Langdon, a UK-based cost and project management consultancy firm, in a transaction valued at US$324 million.
With 2,800 employees, Davis Langdon serves clients around the world, with a strong presence in Africa, Australia and New Zealand, Europe, the Middle East and the United States.
"Davis Langdon's strong cost and project management capabilities bolster our growing portfolio of construction management services," said John M. Dionisio, AECOM president and chief executive officer. "Combined with our recent acquisition of Tishman Construction, we have significantly enhanced AECOM's ability to meet the growing customer demand for turnkey, integrated services - and we have done so by adding two recognized global leaders in the industry to the AECOM enterprise.
"The addition of Davis Langdon to AECOM reflects our continued commitment to execute on our stated strategy of growth and diversification, especially from a global footprint standpoint,” he continued. “Davis Langdon's presence in growth markets positions us well to offer a comprehensive and global program management solution to our clients."
Davis Langdon has worked on many high-profile projects around the world, including the Transbay Terminal in San Francisco; the Tate Modern and the Eden Project in the United Kingdom; Estadio do Dragao in Portugal; Abu Dhabi International Airport; Grand Egyptian Museum in Cairo, Egypt; The Clem Jones Tunnel (CLEM7) in Brisbane, Australia; the Gautrain Rapid Rail Link in Johannesburg, and the Green Point Stadium , newly built for the 2010 FIFA World Cup, in Cape Town, South Africa.
"Davis Langdon generated gross revenue of approximately US$430 million in calendar year 2009," said Michael S. Burke, AECOM executive vice president and chief financial officer. "Davis Langdon has a long track record of strong cash flow generation and profitability. The addition of Davis Langdon to AECOM will enhance our higher-margin program management and construction management offering."
Davis Langdon is expected to receive approximately 80 percent of the consideration in cash and 20 percent in AECOM common stock. The transaction is expected to close in October of 2010. The acquisition has been approved by Davis Langdon shareholders and partners, and is subject to customary closing conditions, including necessary regulatory and third party approvals.
