AECOM to Acquire Earth Tech
AECOM Technology Corp., a provider of professional technical and management support services, has signed a definitive agreement to acquire Earth Tech Inc., a business unit of Tyco International Ltd.
Earth Tech provides consulting; engineering; and design, build and operate services to water/wastewater, environmental, transportation, and facilities clients globally. The firm had revenue of $1.3 billion in its fiscal year 2007 and employs 7,000 people around the world.
The all-cash $510-million transaction will combine two professional technical services companies.
"We expect that this transaction will generate shareholder returns above our cost of capital," said John M. Dionisio, AECOM president and chief executive officer.
After closing, the company plans to divest certain operations that do not align with its core business and strategic objectives.
"For many years, we have partnered with Earth Tech on projects," Dionisio said. "We know each other very well, and we know the high quality of the work that our respective companies perform. Based on this experience, our management teams have a strong mutual respect for each other -- and we look forward to a smooth, seamless and successful transition.
The transaction, which is subject to customary closing conditions, regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, is expected to close during the third fiscal quarter.