Aecom buying Davis Langdon for $324M and McNeil Technologies for $355M in separate deals

Engineering firm Aecom buys 2 companies for $679M

NEW YORK — Engineering firm Aecom Technology Corp. is making a pair of acquisitions for a combined price of $679 million, extending a recent buying spree.

The Los Angeles company said Thursday it is buying the privately held project management consultant Davis Langdon of London for $324 million.

The deal was announced just hours after Aecom said it would buy national security and intelligence services firm McNeil Technologies Inc. of Springfield, Va., for $355 million.

The pair of deals follow last month’s announcement that Aecom was buying construction manager Tishman Construction Corp. for $245 million. In May, it announced a deal for the Spanish technical services provider Inocsa Ingenieria SL for undisclosed terms.

Aecom said the payout for Davis Langdon will be split 80 percent cash and 20 percent common stock. The deal is expected to close in October, pending regulatory approval.

Davis Langdon has 2,800 employees and operates in Africa, Australia and New Zealand, Europe, the Middle East and the U.S. Its Asian counterpart, Davis Langdon & Seah, will remain independent, but will continue to work with Aecom’s Davis Langdon under an existing collaboration agreement.

David Langdon will enhance Aecom’s program and construction management capabilities, said Michael S. Burke, Aecom’s chief financial officer. The company had revenue of $430 million in 2009, and is expected to be neutral to Aecom’s earnings in fiscal 2011, which starts Oct. 1.

Late Wednesday, Aecom said it would buy McNeil Technologies from the private equity firm Veritas Capital. The all-cash deal is expected to close by the end of September, pending needed regulatory approvals. McNeil had $245 million revenue in 2009.

McNeil has about 1,500 employees and contracts with the Defense and Homeland Security departments and other federal and municipal agencies. Together with SSI Services Inc., which Aecom bought for an undisclosed amount in November, McNeil helps to diversify Aecom’s work in the national security field, the company said.

Separately, Aecom reported net income of $64.8 million, or 56 cents per share, for its fiscal third quarter ended June 30, up 27 percent from $51.1 million, or 46 cents per share, a year earlier.

Aecom shares down a penny at $25.21 in morning trading Thursday.