Lindsay Goldberg and American Securities LLC agreed Oct. 14 to buy the management services business of AECOM. AECOM said in a separate statement that the deal was valued at $2.405 billion or 11.6x expected fiscal 2019 adjusted EBITDA. Management services, of Germantown, Maryland, is a contractor to the U.S. federal government and serves various departments and agencies, including the Department of Defense and the Department of Energy. Services include program and facilities management, environmental management, training, logistics, consulting, systems engineering and technical assistance, and systems integration and information technology.
American Securities and Lindsay Goldberg to Acquire AECOM’s Management Services Business
Creates Leading, Standalone Government Services Provider Dedicated to Helping Governments Solve Their Most Pressing Challenges
October 14, 2019 06:56 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Affiliates of Lindsay Goldberg and American Securities LLC today announced that they have entered into a definitive agreement to acquire the Management Services business (“Management Services” or the “Company”) from AECOM.
Management Services is a leading contractor to the U.S. federal government and serves various departments and agencies, including the Department of Defense and the Department of Energy, as well as departments and agencies of allied governments, such as the U.K. Nuclear Decommissioning Authority and the U.K. Ministry of Defense. The Company provides an array of classified and unclassified services globally, both directly and through joint ventures or similar partner arrangements, including program and facilities management, environmental management, training, logistics, consulting, systems engineering and technical assistance, and systems integration and information technology. Based in Germantown, Maryland and with operations in 48 states and 28 countries, the Company employs over 25,000 people, more than 10,000 of whom have security clearance.
John C. Vollmer, Group President of Management Services, and the existing management team will continue to lead the Company. Mr. Vollmer commented, “This transaction is a testament to our proven execution ability in complex, mission-critical situations globally, and the hard work and commitment of our talented employees. American Securities and Lindsay Goldberg have impressive track records of building lasting value for their portfolio companies, particularly in the government services sector. I am confident that this world-class investor group has the resources and expertise that will enable us to accelerate our innovation and future growth.”
“The Management Services business is a proven industry leader with distinctive expertise that plays a vital role in supporting governments around the world to execute programs of critical importance,” said Russell Triedman, Partner at Lindsay Goldberg. “We intend to leverage our extensive experience investing in the government services sector, including our prior investments in PAE and ECS Federal, and we look forward to working alongside management and American Securities to thoughtfully grow the Company and its capabilities both organically and through strategic transactions.”
“We are pleased to be acquiring the Management Services business in partnership with its President, John Vollmer, and the rest of its outstanding management team,” added Ben Dickson, a Managing Director of American Securities. “It is a unique platform in government services with deep sector experience and expertise, and an unparalleled reputation and commitment to its customers. We look forward to growing the business alongside management and Lindsay Goldberg by continuing to provide its customers with the best capabilities and service available in the market.”
The transaction is subject to customary closing conditions and regulatory approvals. The transaction is expected to close by the first quarter of 2020.
Cravath, Swaine & Moore LLP is serving as legal advisor to Lindsay Goldberg and American Securities. RBC Capital Markets LLC and J.P. Morgan Securities LLC acted as financial advisors for both firms.
About American Securities
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion and/or $50 million to $250 million of EBITDA. American Securities and its affiliates have approximately $23 billion under management. For more information, visit www.american-securities.com.
About Lindsay Goldberg
Lindsay Goldberg is a private investment firm that focuses on partnering with families, founders and management teams seeking to actively build their businesses. Founded in 2001, Lindsay Goldberg’s relationship-driven approach is centered upon a collaborative investment model and supported by its global network of affiliate partners. For more information about Lindsay Goldberg, please visit www.lindsaygoldbergllc.com.