LOS ANGELES AND NEW YORK CITY — Los Angeles-based AECOM Technology Corp. has acquired New York City-based Tishman Construction Corp. in a $245 million transaction. AECOM is a provider of technical and management support services for government and commercial clients. Tishman is a 112-year old construction management company that operates across the United States and in the United Arab Emirates.
AECOM states in a release that the deal allows it to expand its higher-margin construction management and program management businesses without increasing its risk. John Dionisio, president and CEO of AECOM, commented, “This is a unique opportunity that combines two best-in-class industry leaders to form a fully integrated global platform capable of delivering the full suite of services, from project concept to completion.”
AECOM will finance the purchase with a combination of cash and common stock. The cash portion will come from the company's balance sheet and will include proceeds from its recently announced $250 million debt issuance. As part of the deal, Dan Tishman, chairman and CEO of Tishman Construction, will continue to head the company's operations and will join AECOM as vice chairman and a member of its board of directors.
With the transaction, AECOM will gain a company that is very active in the commercial real estate industry. Tishman is currently assisting with the development of the 1,776-foot 1 World Trade Center in New York City, the 5.5 million-square-foot FDA headquarters in Washington, D.C., and the first phase of the Department of Homeland Security's new headquarters, also in Washington.
— Coleman Wood