(Reuters) - AECOM (ACM.N) has agreed to sell its management services unit to private equity firms Lindsay Goldberg and American Securities for about $2.4 billion, the U.S. construction and engineering company said on Monday.
The management services unit provides logistics and technical assistance to the U.S. government and had revenue of $3.69 billion in 2018, representing about 18% of the company’s annual sales.
AECOM, which is under pressure from activist investor Starboard Value LP to conduct a review of its assets, competes with Jacobs Engineering Group Inc JEC.N and KBR Inc (KBR.N).
The company expects to reduce its debt and repurchase shares from the proceeds of the deal.
Goldman Sachs and Co LLC and DBO Partners LLC served as financial advisers To AECOM, while and Wachtell, Lipton, Rosen and Katz served as legal adviser.
Cravath, Swaine and Moore LLP served as legal adviser to American Securities and Lindsay Goldberg.
The deal is expected to close in the first half of fiscal 2020.
Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila