Shimmick Construction (Shimmick) announced on Jan. 4 that the business now operates as a leading independent construction company following an investment from Oroco, a strategic long-term investor with a focus on infrastructure projects across the country. This follows the completion of a recent transaction between AECOM and Oroco, which closed on Jan. 2.
Shimmick is a heavy civil construction company with successful projects delivered across a variety of critical infrastructure markets including bridges, water and wastewater treatment, locks and dams, transit, transportation, and foundations. Shimmick will operate as an independent company with renewed commitment to ongoing investments in its employees, technology, and equipment. All employees and contracts will stay with the company, and the Shimmick leadership team will remain unchanged.
“With Oroco’s full support and confidence, Shimmick is better positioned to successfully deliver critical infrastructure projects to improve our nation’s vital needs,” said Steve Richards, president of Shimmick. “We are excited to embark on this new chapter in our history and look forward to working with our partners and clients to develop innovative solutions and provide high-quality customer service.”
Shimmick has approximately 2,700 employees and a broad portfolio of iconic infrastructure projects. Over recent years, significant increases in transportation and infrastructure spending across the U.S., along with the federal government, have supported nearly double-digit annual market growth resulting in a large backlog of unmet infrastructure needs.
“We share Shimmick’s values of pride in community and dedication to serving clients and people,” said Mitchell Goldsteen, principal at Oroco. “The team at Shimmick has distinguished itself as one of the very best through acclaimed infrastructure and transportation projects that define the cutting edge of civil engineering. We look forward to supporting their growth as a value-added partner.”
Under AECOM, Shimmick merged with AECOM’s civil construction business comprised of heritage construction companies Morrison Knudsen, Washington Group International, Raytheon Engineers & Constructors and others. Since then, these legacy companies have operated as a single, integrated construction unit under the Shimmick name and brand.
“The completion of the sale of the Civil construction business marks a significant milestone in the transformation of our business profile to best position AECOM for long-term success,” said Troy Rudd, AECOM’s chief executive officer. “As global leaders in the infrastructure, environment and water markets, we are poised to capitalize on our clients’ increasing demand for our consulting services to transform cities, achieve bold ESG ambitions and better the communities we serve. With the progress we have made on our key strategic priorities, our advancement of our ‘Think and Act Globally’ strategy to drive growth and the momentum in the business, we remain committed to repurchasing shares in order to fully capitalize on the value creation opportunity.”
King & Spalding served as legal advisor to Oroco in connection with the transaction. Wachtell, Lipton, Rosen & Katz served as legal advisor to AECOM in connection with the transaction, and DBO Partners LLC served as its financial advisor.