Mergers and Acquisitions
Gannett Fleming Buys TranSystems in $1.3B Transport Design Deal
Cash purchase transaction with former private equity firm owner bolsters combined entity's position in bridge, highway, mass transit and rail work
Link of major transportation sector players creates a $1.3-billion operation with an estimated 5,000 employees, the firms say, but no details were disclosed on rebranding and integration.
Engineer Gannett Fleming says it will grow its infrastructure consulting footprint in the transportation sector and others with the purchase of rival TranSystems from its private equity owner, the companies announced. The amount of the cash transaction was not disclosed, but the firms said their combined operations will create a $1.3-billion revenue entity with more than 5,000 employees.
As part of the completed deal announced Aug. 7, the companies said Gannett Fleming CEO Bob Scaer becomes a board director of that firm, under which the now enlarged entity is operating. TranSystems CEO Tim Rock becomes co-president and chief operating officer and Gannett Fleming President and Chief Financial Officer Jim Nevada becomes co-president and CFO of the combined company, with a search for a new CEO announced.
Gannett Fleming, based in Camp Hill, Pa., ranks at No. 29 on ENR’s Top 500 Design Firms list, reporting $775 million in 2023 design revenue, with 64% in transportation work, while TranSystems, Kansas City, ranks at No. 58 with revenue of $453.6 million reported last year, all in transportation. The former is a portfolio company of New York City-based private equity firm OceanSound Partners, which acquired it in late 2022, and the latter had been owned by PE firm Sentinel Capital Partners, also based there. Sentinel had recapitalized TranSystems in 2021, with financial details not disclosed.
At ENR posting time, details of a company rebranding and integration plan were not disclosed and could not be confirmed.
“With this transformative transaction, we ... remain committed to continue building a premier national infrastructure services company,” said Joe Benavides, Gannett Fleming chairman and managing partner of OceanSound Partners.
"OceanSound is putting a lot of money into this. It's aggressive," said one AEC market expert.
The transaction "bolsters our position within bridges, highways, construction services, mass transit and rail, and program management,” said Scaer, adding that it was the “right time to transition to the next generation of leadership."
Rock said the connection will broaden services “in facilities, water, and power engineering” as a more diversified operation.
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