Apollo closes $200 mln investment in CH2M

Apollo Global Management LLC has closed its $200 million investment in CH2M. The deal was announced in May. The agreement calls for Apollo to invest another $100 million in a year. Based in Englewood, Colorado, CH2M is a provider of critical infrastructure and natural resource solutions.


DENVER, CO–(Marketwired – Jun 24, 2015) – CH2M, a global leader in providing critical infrastructure and natural resource solutions, announced today the closing of the first $200 million of investment in CH2M by an affiliate of Apollo Global Management LLC, (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”), a pre-eminent alternative investment manager with a history of investing in industry-leading companies. Investment funds affiliated with Apollo invested in CH2M’s preferred stock pursuant to an agreement entered into on May 27, 2015. Pursuant to that agreement, an additional $100 million investment will occur within the one-year period following closing.
In accordance with its ownership stake, Apollo designees will hold two of the six independent director seats on CH2M’s board of directors, while CH2M employees will continue to hold seven board seats.
Since the late 1880s, CH2M and its legacy companies have been providing clients with world-class infrastructure and natural resource solutions, enhancing quality of life for tens of millions of people around the globe. Example projects include:
• Pioneering work in drinking water and water reuse, for more than 200 cities, agencies and industries around the world;
• Implementation of urban regeneration and “smart city” solutions, such as Shendra-Bidkin along India’s Delhi-Mumbai Industrial Corridor;
• Management of major decommissioning and nuclear remediation efforts in the U.S. and Europe; and
• Implementation of critical infrastructure and development solutions throughout the energy value chain, from oilfield services on Alaska’s North Slope to sour gas development in the Middle East.
Apollo was formed in 1990 and as of March 31, 2015, had $163 billion in assets under management. Socially responsible investing is a core tenet of Apollo’s investment philosophy.
CH2M employs more than 25,000 of the industry’s best professionals and operates in more than 90 countries, with annual gross revenues of $5.5 billion. CH2M is consistently recognized as one of the world’s top engineering firms by Engineering News-Record and was recently named one of the “World’s Most Ethical Companies” for the seventh consecutive year by the Ethisphere Institute.
About CH2M
CH2M is a global engineering and project delivery company partnering with public and private clients to tackle the world’s most complex infrastructure and natural resource challenges. The firm’s work is concentrated in the water, transportation, energy, environment and industrial markets. CH2M has gross revenues of $5.5 billion, has 25,000 employees and is a specialist in program, construction and operations management and design. For more information, visit www.ch2m.com.
About Apollo Global Management
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Shanghai and Hong Kong. Apollo had assets under management of approximately $163 billion as of March 31, 2015 in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com.
All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of growth, earnings, revenue, cash flows, tax rate, share count or other financial items; any statements of the plans, strategies and objectives for this preferred stock investment and future operations; and any statements regarding future conditions or performance. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. You should not place undue reliance on our forward-looking statements. Important factors that could cause our actual results, performance and achievements or industry results to differ materially from estimates or projections contained in forward-looking statements include, among other things: uncertainties related to global economic conditions and infrastructure funding; audits; modifications and termination of long-term client contracts; losses under fixed-price contracts; our limited control over operations run through our joint venture entities; misconduct by our employees or consultants; our failure to comply with laws or regulations; failure to successfully execute our strategy and plans; failure to recruit or retain key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our plans and expectations expressed in our forward-looking statements are set forth in our filings with the Securities and Exchange Commission (SEC) and the UK Financial Conduct Authority, including our most recent prospectuses, our Annual Report filed on Form 10-K and our Quarterly Reports filed on Form 10-Q where you will find a detailed list of risk factors. You can find these filings on our stockholder information website atwww.ch2mstockholder.com and on the SEC website at www.sec.gov. We do not intend, and undertake no obligation, to update any forward-looking statement.