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AECOM

From Wikipedia, the free encyclopedia

For the medical college, see Albert Einstein College of Medicine.
Not to be confused with Aecon or AKOM.
AECOM
FormerlyAECOM Technology Corporation
Company typePublic
Industry
Founded1910; 114 years ago (1910)
HeadquartersDallas, Texas, U.S.
Area served
Worldwide
Key people
Troy Rudd (CEO)
Services
RevenueIncrease US$16.1 billion (2024)
Increase US$827 million (2024)
Increase US$402 million (2024)
Total assetsIncrease US$12.1 billion (2024)
Total equityDecrease US$2.18 billion (2024)
Number of employees
51,000 (2024)
Websiteaecom.com
Footnotes / references
Financials as of September 30, 2024.[1]
AECOM office building in Markham, Ontario, Canada

AECOM (/eɪ.iːˈkɒm/, ay-ee-KOM; formerly AECOM Technology Corporation; stylised AΞCOM) is an American multinational infrastructure consulting firm headquartered in Dallas, Texas.

AECOM has approximately 51,000 employees, and is number 291 on the 2023 Fortune 500 list.[2]

The company's official name from 1990–2015 was AECOM Technology Corporation, and is now AECOM.[3] The company is listed on the New York Stock Exchange (NYSE) under the ticker symbol ACM and on the Frankfurt Stock Exchange under the ticker symbol E6Z.[4]

History

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AECOM traces its origins to Kentucky-based Ashland Oil & Refining Company, which in turn grew out of Swiss Drilling Company, founded in Oklahoma in 1910 by J. Fred Miles. He gained control of some 200,000 acres and formed Swiss Oil Company in Lexington. In 1924, Miles launched a refining operation called Ashland Refining Company, headed by Paul Blazer. While the parent company struggled, leading to the ouster of Miles, Ashland prospered under Blazer's leadership, and in 1936, he was named chief executive officer of the reorganized company, Ashland Oil & Refining Company. In 1966, Ashland acquired Warren Brothers and became involved in highway construction and construction materials. The company was able to take advantage of refinery byproducts to produce asphalt. Ashland grew into one of the nation's major road-construction firms, and laid a foundation for AECOM. Through a series of acquisitions and technological developments, Ashland grew to include chemical, petrochemical, highway construction, and construction materials firms within its realm, laying the groundwork for a management buyout of Ashland Technology in 1985.[5]

In the 1970s, Ashland Oil & Refining became Ashland Oil, Inc. Five years later the company consolidated its construction assets into a construction division and also formed a coal subsidiary, indicative of a changing focus at Ashland. Although it generated more than $1 billion a year in sales, Ashland was a small player in the oil industry at a time when the cost of exploration was prohibitively expensive. By 1980, Ashland sold its production assets, and a year later was reorganized as a modified holding company. A new corporate strategy was implemented as Ashland now focused on refining and marketing and sought to grow its non-refining businesses. In 1984, Ashland acquired Daniel, Mann, Johnson & Mendenhall (DMJM), a global provider of transportation-related engineering services. Originally focused on military projects, after World War II it had become one of the first integrated engineering and architectural firms in the western United States. The acquisition of DMJM also included its president, Richard G. Newman. In 1985, DMJM became part of a new subsidiary, Ashland Technology Corporation. Two years later Newman was named its new chief executive and president.[6]

When Ashland chose to return to its core petroleum refining business in the late 1980s, Newman recommended an employee buyback proposal, resulting in the spin-off of Ashland Technology and the creation of AECOM (Architecture, Engineering, Construction, Operations, and Management) in 1990.[7] The company went on to acquire a number of engineering, design and planning firms including engineering company Maunsell, urbanism and sustainability practice EDAW, Economic Research Associates (ERA), environmental management firm ENSR and The RETEC Group Inc., architects Ellerbe Becket[8] and Davis Langdon, the quantity surveyors and construction consultants.[9]

In 2000, AECOM acquired Metcalf and Eddy, a water and wastewater engineering firm based in Massachusetts,[10] and in September, 2004 it acquired the Canadian company, UMA Engineering Ltd.[11]

AECOM went public during May 2007 with an initial public offering on the NYSE, netting $468.3 million.[12] On January 8, 2008, AECOM acquired The Services Group, Inc., a provider of consulting services to the US Agency for International Development and other multi-lateral donor organizations. On July 28, 2008, AECOM completed its purchase of Earth Tech Inc., a consulting and engineering firm, from Tyco International for $510 million.[13][14] On July 14, 2010, AECOM announced its acquisition of Tishman Construction Corp., a leading provider of construction management services in the United States and the United Arab Emirates, in a $245 million transaction including $202 million in cash and the remainder in AECOM common stock.[15] On July 13, 2014, AECOM announced its acquisition of URS Corporation, an engineering, construction, and technical services firm for US$56.31 per share in cash and stock.[16][17] Effective July 10, 2014, it acquired ACE International Consultants SL, a Madrid-based provider of consulting services. In July 2014, it acquired Hunt Construction Group, adding to AECOM's construction services business.[18] In July 2017, AECOM acquired Shimmick Construction Company.[19] Officials at the Golden Gate Bridge, Highway and Transportation District blamed the acquisition for delaying construction of a safety barrier at the bridge by 2 years.[20]

In October 2019, AECOM announced plans to sell their Management Services division to private equity firm American Securities LLC and Lindsay Goldberg for $2.405 billion.[21][22] Management Services provides services and support to governmental clients including the Department of Energy and Department of Defense. On January 31, 2020, this transaction was completed with the new company being called Amentum.[23] In October 2020, AECOM announced the sale of its Power construction business to private equity firm CriticalPoint Capital.[24] In December 2020, AECOM announced the sale of its Civil construction business, including Shimmick Construction, to private equity firm Oroco Capital, which completed January 5, 2021.[25] AECOM explained these divestitures as a "transformation into a higher-margin, lower-risk Professional Services business".[24]

In August 2021, AECOM announced plans to relocate its global headquarters from Los Angeles, California to Dallas, Texas.[26]

The company has worked on megaprojects including the Sutong Yangtze River Bridge (the world's longest cable-stayed bridge), One World Trade Center (the tallest tower in the Western Hemisphere), as well as some of the largest sports venues, ports, and disaster recovery programs in the world.[27]

Management

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AECOM's first president and CEO was Richard G. Newman, who came to Ashland through its acquisition of Daniel, Mann, Johnson & Mendenhall (DMJM). Under Ashland Oil's ownership, he was president and chief operating officer of DMJM from October 1985 to December 1988. While president of Ashland Technology Corp. from December 1988 until May 1990, Newman was instrumental in taking it from a division of Ashland Oil to an independent company. He was president when the company changed its name to AECOM Technology Corporation in April 1990. Newman was president until 1993, and then chairman, president and CEO from May 1993 to October 2000, and chairman and CEO from 2000 to 2005.[28]

In October 2005, John M. Dionisio succeeded Newman as president and CEO of AECOM.[28] In 2011, Dionisio became chairman of the company.[29] Dionisio had previously served as COO from October 2003 to October 2005 and president and CEO of the subsidiary DMJM+Harris from October 2000 to October 2003.[28]

In October 2011, Michael S. Burke succeeded Dionisio as president and then in March 2014 succeeded him as CEO.[30] Burke joined AECOM in 2005 and was appointed CFO in 2006.[31]

In 2011, Stephen M. Kadenacy was named chief financial officer, later promoted to president and COO.[32] In 2017, Kadenacy left the company and was succeeded as COO by Randy Wotring.[33]

As of March 2019, key leaders of AECOM were as follows:[34]

  • Michael Burke, chairman and chief executive officer[30]
  • Daniel Tishman, Vice Chairman and Chairman of Tishman Construction Corporation
  • Fredrick W. Werner, President of Major Pursuits

In November 2019, AECOM announced that Burke would retire as chairman and CEO. The change was announced to be effective after either the next annual meeting or completion of the search for a replacement. At the same time, AECOM said that the board of directors would be expanded to include representatives of activist-shareholder Starboard Value, the fifth largest shareholder.[35][36] Amid market speculation that AECOM would be acquired by WSP Global,[37][38] AECOM announced the selection of W. Troy Rudd to be CEO. The change will be effective as of October 1, 2020. Before his appointment as CEO, Rudd served as CFO for the company. The announcement included naming Lara Poloni as the new president.[39] The announcement resulted in the resignation of the Starboard Value board member in protest over the selection.[40] AECOM was included on Fortune's list of the world's most admired companies in 2024.[41]

Services

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AECOM provides Archaeology, Architecture & Design, Urban Planning, Landscape Architecture, Asset Management, Construction, Cost Management, Decommissioning & Closure, Economics, Engineering, Environmental Services, International Development, IT & Cyber Security, Operations & Maintenance, Planning & Consulting, Program Management/Construction Management, Risk Management & Resilience and Technical Services.[42]

Corporate affairs

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AECOM is headquartered in Dallas,[43] Texas, United States, with clients in more than 150 countries. The company reported a revenue of US$17.4 billion during the 12 months that ended September 30, 2016.[44]

In 2024, the company reported revenue of $14.37 billion, with an operating income of $324 million.[45]

See also

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References

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  1. ^ "Aecom FY 2024 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. November 19, 2024.
  2. ^ "Fortune 500". Fortune. Retrieved July 13, 2024.
  3. ^ "AECOM Company Name: Stock Quote & Company Profile". BusinessWeek. Archived from the original on August 10, 2013. Retrieved January 27, 2015.
  4. ^ "Trading Symbol Germany E6Z: Stock Quote & Company Profile". BORSE Frankfort Press. Retrieved August 5, 2016.
  5. ^ "Aecom IPO back on after four-year wait". Marketwatch. January 24, 2007. Retrieved June 2, 2018.
  6. ^ "AECOM History, Date Dec 13, 2007". referenceforbusiness.com. Retrieved February 16, 2016.
  7. ^ Dougherty, Conor (March 3, 2002). "Aecom Planning IPO to Pay Debt On Acquisitions". Los Angeles Business Journal. Retrieved July 13, 2024.
  8. ^ "AECOM Technology buys Ellerbe Becket". Biz Journals. October 26, 2009. Retrieved June 2, 2018.
  9. ^ "AECOM corporate website - press release on Davis Langdon merger". AECOM. 2013. Archived from the original on November 27, 2013. Retrieved November 13, 2013.
  10. ^ "AECOM filed this Form S-1 on 03/08/2007". SEC Filings. AECOM. March 8, 2007. Form S-1 (U.S. Securities and Exchange Commission; Registration Statement Under The Securities Act of 1933). Archived from the original on September 26, 2018. Retrieved June 13, 2018.
  11. ^ "UMA Group acquired by L.A.-based Aecom". Daily Commercial News. September 17, 2004. Retrieved July 13, 2024.
  12. ^ "AECOM, Form 10-K, Annual Report, Filing Date Dec 13, 2007". secdatabase.com. Retrieved December 30, 2012.
  13. ^ "AECOM, Form 8-K, Current Report, Filing Date Feb 12, 2008". secdatabase.com. Retrieved December 30, 2012.
  14. ^ "AECOM, Form 8-K, Current Report, Filing Date Jul 31, 2008". secdatabase.com. Retrieved December 30, 2012.
  15. ^ "AECOM acquires Tishman Construction Corp. in US$245-million transaction". AECOM. Retrieved October 3, 2017.[permanent dead link‍]
  16. ^ "AECOM to pay $4 billion for engineering firm URS Corp". Reuters. July 13, 2014. Retrieved April 7, 2021.
  17. ^ "AECOM to acquire URS Corporation". AECOM. Retrieved July 17, 2014.
  18. ^ "ACM (NYSE)". Retrieved February 16, 2016.
  19. ^ Phillips, Erica E. (July 6, 2017). "Aecom to Buy Shimmick Construction for $175 Million". Wall Street Journal. Retrieved October 9, 2019.
  20. ^ Swan, Rachel (December 12, 2019). "Golden Gate Bridge suicide nets delayed two years, as people keep jumping". San Francisco Chronicle. Retrieved April 19, 2021.
  21. ^ "AECOM accelerates value creation strategy with sale of its Management Services business for $2.405 billion". October 14, 2019. Retrieved January 30, 2020.
  22. ^ Cornell, Joe. "AECOM Cancels Spin-Off; To Sell Management Services Business For ~$2.4 Billion". Forbes. Retrieved April 7, 2021.
  23. ^ "Management Services Sale". AECOM. Retrieved April 7, 2021.
  24. ^ a b "AECOM announces sale of its Power construction business to CriticalPoint Capital". AECOM. Retrieved April 19, 2021.
  25. ^ "Oroco Capital Closes Buy of AECOM's Civil Construction Unit; Troy Rudd Quoted". GovCon Wire. January 5, 2021. Retrieved April 19, 2021.
  26. ^ "Infrastructure giant AECOM to relocate global headquarters to Dallas". Dallas Business Journal. Retrieved August 17, 2021.
  27. ^ "AECOM – інновації в світовому будівництві - la-future.com" [AECOM – Innovations in Global Construction] (in Ukrainian). January 28, 2023. Retrieved February 4, 2023.
  28. ^ a b c AECOM Technology Corporation. SEC Form 10-12G, March 7, 2007.
  29. ^ "John M. Dionisio: Executive Profile & Biography". Bloomberg.
  30. ^ a b Prior, Anna (December 11, 2013). "Aecom Tech Names President Burke as CEO". Wall Street Journal. ISSN 0099-9660. Retrieved October 9, 2019.
  31. ^ Fahy, Michael. "Aecom promotes Michael Burke to chairman - ConstructionWeekOnline.com".
  32. ^ "Stephen M. Kadenacy: Executive Profile & Biography". Bloomberg.
  33. ^ Wilkers, Ross. WashingtonTechnology.com. AECOM promotes Wotring to COO, Kadenacy exiting company. June 29, 2017.
  34. ^ "AECOM Leadership". Archived from the original on January 14, 2019. Retrieved March 3, 2019.
  35. ^ AECOM. AECOM Announces Governance Agreement with Starboard Value. November 22, 2019.
  36. ^ Kilgore, Tomi. Aecom CEO to retire, as company enters governance agreement with activist investor Starboard Value. November 22, 2019.
  37. ^ Owusu, Tony. Aecom Talks to Be Acquired by Canada's WSP Are Advancing. March 4, 2020.
  38. ^ Korman, Richard. WSP Plans New Stock Offering, Reviving Speculation About Deal. 'ENR'. June 2, 2020.
  39. ^ AECOM. AECOM to appoint W. Troy Rudd as Chief Executive Officer. June 15, 2020.
  40. ^ Herbst-Bayliss, Svea; Roumeliotis, Greg. Starboard's Feld quits AECOM's board over CEO pick. 'Reuters'. June 15, 2020.
  41. ^ "World's Most Admired Companies". Fortune. Retrieved July 13, 2024.
  42. ^ "Services". AECOM. Retrieved April 14, 2023.
  43. ^ AECOM Contact Us. AECOM Contact Us
  44. ^ "AECOM Reports Fiscal Fourth Quarter and Full Year 2016 Results". AECOM. Archived from the original on May 4, 2017. Retrieved May 14, 2017.
  45. ^ "Starboard urges AECOM to explore sale of construction unit". Reuters. November 13, 2023. Retrieved July 13, 2024.
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