An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
AECOM advances strategic focus on its Professional Services business with sale of its Oil & Gas maintenance and turnaround services business
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
AECOM (NYSE:ACM) announced the sale of its Oil & Gas maintenance and turnaround services business to Graham Construction affiliates. This divestment, considered non-core to AECOM's primary Professional Services business, will be included in discontinued operations. The transaction awaits customary closing conditions and regulatory approvals, expected to finalize in Q2 of fiscal 2022. CEO Troy Rudd highlighted the move as part of AECOM's strategy to concentrate on its higher-margin services, thanking the Oil & Gas team's contributions.
Positive
Focus on higher-margin services enhances strategic direction.
Expected closing of the divestment boosts operational efficiency.
Negative
Divesting Oil & Gas services may lead to reduced revenue streams in the short term.
DALLAS--(BUSINESS WIRE)--
AECOM (NYSE:ACM), the world’s trusted infrastructure consulting firm, today announced the signing of a definitive agreement to sell its Oil & Gas maintenance and turnaround services business to affiliates of Graham Construction. The business being divested is non-core to the Company’s Professional Services business and is included in discontinued operations. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the second quarter of fiscal year 2022.
“Today’s announcement furthers the execution of our strategy to focus our efforts exclusively on our higher-margin and lower-risk Professional Services business,” said Troy Rudd, AECOM’s chief executive officer. “I thank the leadership and employees of the Oil & Gas maintenance and turnaround services team for their efforts over the years and wish the business the best of success in the future.”
Advisors
Wachtell, Lipton, Rosen & Katz is serving as legal advisor to AECOM is connection with the transaction, and DBO Partners LLC is serving as financial advisor.
About AECOM
AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical expertise and innovation, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $13.3 billion in fiscal year 2021. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.
Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. 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. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; impacts caused by the coronavirus and the related economic instability and market volatility, including the reaction of governments to the coronavirus, including any prolonged period of travel, commercial or other similar restrictions, the delay in commencement, or temporary or permanent halting of construction, infrastructure or other projects, requirements that we remove our employees or personnel from the field for their protection, and delays or reductions in planned initiatives by our governmental or commercial clients or potential clients; losses under fixed-price contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; high leverage and potential inability to service our debt and guarantees; exposure to Brexit; exposure to political and economic risks in different countries; currency exchange rate fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; AECOM Capital real estate development projects; managing pension cost; cybersecurity issues, IT outages and data privacy; the Oil & Gas maintenance and turnaround services transaction and other recent acquisitions and divestitures, including the risk that any contingent purchase price adjustments from those transactions could be unfavorable and result in lower aggregate cash proceeds and any future proceeds owed to us under those transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.
