AECOM buys URS: 95,000 employees

AECOM announced a definitive agreement to acquire URS Corporation on July 15. The transaction is expected to close in October 2014.

URS is based in San Francisco, but lists 60 offices across Canada. The AECOM transaction was worth US $6 billion.

A corporate announcement said the acquisition is: “expected to realize US $250 million in annual cost-saving synergies, nearly all of which will be achieved by the end of fiscal year 2016.”

The combined company will be a “leading, fully integrated infrastructure and federal services provider,” says the announcement. It will have 95,000 employees in 150 countries. For calendar year 2013 pro forma revenues will be more than US $19 billion and EBITDA of approximately US$1.3 billion

The combination also “accelerates AECOM’s strategy of offering an integrated-delivery model by adding key capabilities and expertise in markets including construction, oil & gas, power and government services

Michael S. Burke, AECOM president and chief executive officer, said: “Clients, employees and stockholders of both companies will benefit from the opportunities created by these expanded capabilities, broad global reach in key growth markets and economies of scale. In one step, we will dramatically accelerate our strategy of creating an integrated delivery platform with superior capabilities to design, build, finance and operate infrastructure assets around the world.”

Martin M. Koffel, chairman and chief executive officer of URS, said: “This is a compelling strategic combination that we believe will benefit our clients, stockholders and employees. URS stockholders will receive significant, immediate value from the transaction and will be able to participate in the future prospects of the combined company, which we expect will be better positioned to compete for major, complex projects across a diverse range of end markets and geographic regions.”

In July AECOM also bought Hunt Construction Group, a company with 700 employees in the U.S.