Deal Sends Tishman Construction Into AECOM’s Arms
Global design giant AECOM Technology Corp., Los Angeles, and leading New York City-based building construction manager Tishman Construction Corp. are linking up to share needed capabilities in a changing construction market.
AECOM announced July 14 that it has paid $245 million to acquire Tishman. The deal, which had been rumored for the last several weeks, adds a construction powerhouse to the growing AECOM family of firms operating around the world, while offering Tishman a springboard to expand its operations beyond struggling commercial building markets in the U.S.
“The addition of Tishman to the AECOM enterprise reflects our commitment to execute on our stated strategy of growth and diversification,” says AECOM CEO John M. Dionisio. “We are expanding our portfolio of global expertise and enhancing our ability to meet the growing customer demand for turnkey solutions, including integrated design, engineering and construction services.”
Tishman has 900 employees across the United States and in the United Arab Emirates and generated revenue of nearly $1 billion in 2009, says AECOM. Dan Tishman, the construction manager's chairman and CEO, says the acquisition “allows us to expand our reach globally and seize new opportunities as part of the worldwide AECOM team.” AECOM says Tishman “will continue to head Tishman’s operations” and takes a new role as the design firm’s vice chairman and board member.
Tishman is currently building 1 World Trade Center at Ground Zero in Manhattan, set to become New York City’s tallest building; the PATH Terminal Hub also in lower Manhattan; a new 5.5-million sq-ft headquarters for the U.S. Food and Drug Administration in Washington, D.C. It is also in a joint venture with AECOM to build the Angsana Resort and Spa in Abu Dhabi and to serve as construction manager for phase 1 of the U.S. Dept. of Homeland Security’s new headquarters, also in Washington
The transaction will be paid for with cash and AECOM common stock. AECOM will finance the cash portion of the transaction with cash from its balance sheet which includes proceeds from its recently announced US$250-million debt issuance.
