LOS ANGELES — AECOM Technology Corporation, a provider of professional technical and management support services for government and commercial clients around the world, has acquired Tishman Construction Corp., a provider of construction management services in the United States and the United Arab Emirates, in a $245-million transaction.
“The addition of Tishman to the AECOM enterprise reflects our commitment to execute on our stated strategy of growth and diversification,” said AECOM President and CEO, John M. Dionisio. “We are expanding our portfolio of global expertise and enhancing our ability to meet the growing customer demand for turnkey solutions, including integrated design, engineering, and construction services.”
This transaction allows AECOM to expand its mix of higher-margin construction management/program management business — a market estimated to be in excess of $100 billion globally by Engineering News-Record — without materially increasing its overall risk profile.
Tishman specializes in providing construction management services, but also provides program management and other construction-related services. It serves public- and private-sector clients in a variety of markets, including arts and culture, commercial, education, gaming, health care, hospitality, residential, retail, technology, and transportation. This strategic addition to the AECOM enterprise results in an increased global presence and bolstered resources for integrated delivery of mega-projects. Tishman has 900 employees across the United States and in the United Arab Emirates, and generated revenues of nearly $1 billion in 2009.
Tishman is currently engaged in a number of noteworthy projects, including 1 World Trade Center, which, on completion, at 1,776 feet will be New York City’s tallest building; World Trade Center Tower 4 and the PATH Terminal Hub at the World Trade Center; the Food and Drug Administration’s 5.5-million-square-foot headquarters project in Washington, D.C.; and the Angsana Resort and Spa in Abu Dhabi. Tishman, in a joint venture with AECOM, is currently serving as construction manager for phase 1 of the Department of Homeland Security’s new headquarters on the St. Elizabeths campus in Washington, D.C.
The transaction will be paid in cash and AECOM common stock. AECOM will finance the cash portion of the transaction with cash from its balance sheet which includes proceeds from its recently announced $250-million debt issuance. The transaction closed on July 14, 2010.