Longtime power sector engineering, procurement and construction contractor AECOM is selling that part of its business to a private equity firm.
AECOM closed on the sale of its power construction unit to affiliates of CriticalPoint Capital LLC. The company plans to focus on its professional services division.
“The sale of the Power construction business marks another milestone in the successful execution of our transformation into a higher-margin, lower-risk Professional Services business,” said Troy Rudd, AECOM’s chief executive officer. “We have built significant momentum in our business and continue to advance efforts to align our organization around a global structure that fosters a culture of collaboration, better connects our expertise and focuses on our best growth opportunities. On behalf of our company, I thank the Power construction team for their contributions over the years and wish the business and CriticalPoint Capital the best of success.”
Among the power sector project builds led by AECOM in recent years include the combined-cycle, gas-fired West Riverside Energy Center (pictured) in Wisconsin, the Solar River site in Australia and nuclear decommissioning efforts in Japan, among others. The company is a multi-sector EPC leader on projects such as roads, hospitals, stadiums and other infrastructure.
No financial terms were given on the value of the sale to CriticalPoint Capital. AECOM’s professional services division yielded approximately $13.6 billion in fiscal year 2019 revenue.
The company appointed a new CEO, W. Troy Rudd, effective at the beginning of October. Rudd succeeded the retiring Michael S. Burke.
During his previous 11 years with AECOM, Rudd has guided a steady growth in the professional services business. Earlier this year, Engineering News Record named AECOM as the No. 1 environmental firm in its annual Top 200 ranking.
AECOM traces its history back more 100 years to the early oil and gas industry. The AECOM brand (for architecture, engineering, consulting, operations and maintenance) was formed in 1990.
Wachtell, Lipton, Rosen & Katz served as legal advisor to AECOM in connection with the transaction, and DBO Partners LLC served as its financial advisor.
CriticalPoint Capital, formed eight years ago, is a private equity entity focused on acquiring corporate divestitures “in a state of transition” across North America, according to the firm’s website. It is based in California.
In 2018, CriticalPoint acquired the U.S. power and industrial engineering services division of Altran.