AECOM bulks up West Coast design-build capabilities

Published July 13th, 2017

Engineering giant AECOM will boost its civil construction footprint in the Western US after agreeing to acquire California-based Shimmick Construction for $175 million.

The move will better position the NYSE-listed firm to pursue large-scale water and wastewater project opportunities in North America, for which design-build procurement is increasingly being utilised. Recent DB wins in the water market for AECOM include a $50 million water treatment plant in Woonsocket, RI.

In the past, AECOM has not been shy about buying in additional design-build capabilities in water, following up the 2008 acquisition of Earth Tech by swallowing URS Corp. back in 2014. The Shimmick deal will add around $300 million of revenues, and is expected to close by September 2017.

AECOM anticipates strong market potential in the western US, including double-digit annual growth in California, where the company has identified a $6 billion pipeline of alternative delivery opportunities across all infrastructure sectors.