AECOM and Davis Langdon merge looks to 'fill gaps'

AECOM has worked on the Cultural District of Saadiyat Island.

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AECOM and Davis Langdon, which confirmed a merged last week in a US$324 million deal, are looking forward to ‘filling the gaps’ in their respective business operations across the Middle East, according to executives of the two firms.

David Barwell, chief executive of AECOM, the US technical support provider that bought the project consultancy, said the two firms could provide complementary access to countries in which one company was strong and the other firm had little presence.

“One thing that we found when we were looking at companies and doing due diligence is the list of clients. With Davis Langdon and AECOM there are a lot of companies we have both worked with, but there were also a number we had not. So we have been able to broaden our client list and with it develop in the region,” he told Construction Week in an interview.

“With Davis Langdon we are getting an entrée into Kuwait, and they also have a presence in the Levant region. [In turn] Davis Langdon is getting an entrée into Saudi Arabia. So from a strategic point of view there are added advantages.”

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The companies announced the takeover last week, which will see Davis Langdon – which has a specialism in project and cost management – absorbed into AECOM and mutually enhance the business opportunities in the Middle East.

Barwell added, however, that the merge should be seen as a global acquisition, rather than a result of a focus on one particular region.

Nevertheless, Barwell added that the merge provides a “fully integrated solution”, which he says suits some clients who prefer dealing with a single entity rather than a joint venture.

“Clients are effectively saying: ‘we want you to manage this risk on our behalf’. Some clients prefer that to dealing with a joint venture – they like to know who is boss. They like to know who is in control. With a single-front company it is clear who has responsibility.”

Preliminary communication across Davis Langdon’s regional offices as to the implications of the merge is currently in process, according to Kevin Sims, head of Middle East for the consultancy. Speaking from the company’s Bahrain office – in which it has 70 people and will grow to 150 people upon full integration – Sims echoed the complementary access afforded by the merge.

“Davis Langdon has [historically] been very much focused in the building environment,” he said. “We wanted to be able to expand to project areas in social infrastructure such as water and transportation. This area of business is very different. We’re been looking to take people and expand into that space. This merge has given us that ability.”

In particular he highlighted the 800-strong AECOM staff in Saudi Arabia who would transform the standing of Davis Langdon in the area, which currently has 10 people. The company also now has a presence in Oman as a result of the merge, a country in which Davis Langdon had increasing ly bneen discussing with the firm. In return, Davis Langdon can offer clients and projects in Jordan and Lebanon I particular.

“The most important thing here is growth,” said Sims. “That’s one of the key words we’ve found in the AECOM dictionary.”

Read the full interview in the print edition of Construction Week, coming soon.