Aecom buying Shimmick in $175 million West Coast construction deal

 
07/12/2017


Shimmick’s projects include improvements and repairs on the Golden Gate Bridge.


Infrastructure and engineering firm Aecom is acquiring Shimmick Construction Company Inc. for $175 million, expanding its reach in the Western U.S. in anticipation of hundreds of billions of dollars in infrastructure spending expected in the coming years.

Oakland, Calif.-based Shimmick has taken part in a number of infrastructure projects in the Western U.S., including improvements and repairs on the Golden Gate Bridge and public-transportation work in the San Francisco Bay Area and Honolulu. Aecom ACM, +1.79%   will take on the 27-year-old firm’s $1.35 billion project backlog, including a large project to replace a highway bridge near the Port of Long Beach.

The Trump administration has proposed spending $200 billion over 10 years on infrastructure programs, with a goal of spurring a total of $1 trillion in financing with the inclusion of private investment. Those plans have fueled mergers and acquisitions in the infrastructure sector, as well as new interest from investors, including a planned $100 billion fund from Blackstone Group LP.

In California and Washington, voters have passed ballot measures that call for nearly $180 billion in infrastructure investment, and the California legislature recently approved another $52 billion for road repairs. California’s infrastructure market is expected to grow in double digits annually for the next several years, and Aecom said it aims to capture as much of those funds as possible.

SOURCE: http://www.marketwatch.com/story/aecom-buying-shimmick-in-175-million-west-coast-construction-deal-2017-07-06



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