AECOM acquires UK-based Allen Gordon

DALLAS - AECOM (NYSE: ACM), a global infrastructure consulting firm and prominent player in the Construction & Engineering industry, has announced the acquisition of Allen Gordon LLP, a Scottish company specializing in technical design and advisory services for the water and energy sectors in the U.K. and Ireland. This strategic move comes as AECOM positions itself to capitalize on the expected investment surge in these sectors. According to InvestingPro data, AECOM maintains a "GOOD" financial health score and operates with a moderate level of debt, suggesting strong positioning for strategic growth.

The acquisition, details of which were not disclosed, is anticipated to bolster AECOM’s growth potential in the region. Allen Gordon’s established client relationships and technical expertise are key assets that AECOM aims to leverage, particularly in light of the over £250 billion projected to be invested in water and energy infrastructure over the coming decade. The company has demonstrated solid performance with 8.9% revenue growth in the last twelve months and has consistently raised its dividend for three consecutive years, with an 18.2% dividend growth rate.

Richard Whitehead, AECOM’s chief executive for Europe & India, expressed enthusiasm about the integration of Allen Gordon’s team, citing the timing as crucial given the acceleration of market spending. Allen Gordon’s longstanding client ties and significant framework capacity are expected to offer substantial growth opportunities.

Beverley Stinson, who leads AECOM’s global Water business, highlighted the goal of doubling the company’s water business globally within five years. Stinson believes that Allen Gordon’s expertise will strengthen AECOM’s market position.

Stephen Munro, a Partner at Allen Gordon, also shared optimism about joining forces with AECOM, emphasizing the combined strengths and client credibility that will contribute to their shared ambition of leading the consultancy market in the UK and Ireland.

AECOM, a Fortune 500 firm with a reported revenue of $16.1 billion in fiscal year 2024, is recognized for its comprehensive services, ranging from advisory and planning to design, engineering, and management across various sectors, including water, environment, energy, transportation, and buildings.

This acquisition is part of AECOM’s strategic vision to enhance its service offerings and market reach. The information is based on a press release statement from AECOM.

In other recent news, AECOM has announced its selection for Network Rail’s Asset Protection (ASPRO) support services framework in the UK, continuing its long-standing relationship with Network Rail. This contract spans three years with an optional two-year extension and involves collaboration with local authorities and rail companies to manage risks during third-party work. Additionally, AECOM has been engaged by Hong Kong’s Highways Department to provide technical services for the Northern Metropolis Highway, a project aimed at enhancing connectivity in the region. This joint venture will utilize advanced technologies to ensure efficient project delivery.

In Australia, AECOM has been chosen to partner with Sydney Water for a capital investment program to revamp the city’s water infrastructure, addressing rapid population growth and environmental pressures. Meanwhile, KeyBanc Capital Markets has adjusted its financial outlook for AECOM, reducing the price target to $109 while maintaining an Overweight rating, citing market conditions. Despite this, AECOM’s long-term growth outlook remains strong, supported by the Infrastructure Investment and Jobs Act in the U.S.

Moreover, AECOM has secured a major contract in Hong Kong’s Northern Metropolis development, focusing on design and construction for the San Tin / Lok Ma Chau Development Node. This project aims to balance modern development with nature conservation and is expected to support around 2.5 million people. AECOM continues to leverage its expertise in various global projects, with reported revenue of $16.1 billion for fiscal year 2024.

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