Signing of the summer

Kevin Sims, head of Middle East at Davis Langdon, says the merger with AECOM allows access to the Oman market.
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At the beginning of August, just as much of the construction sector in the Gulf region was slowing in the run-up to Ramadan, an announcement of a major merger sent a bolt of excitement and intrigue through the industry.

AECOM, the giant technical and management support firm from Los Angeles building its presence in global construction, shook hands with Davis Langdon on an AED324 million purchase of the UK-based project consultant.

For a relatively subdued buy-out market across a number of sectors, it was a big deal. Now, as financial statements and contract wins separate the top performers from those merely surviving, the GCC will have a significant new player that combines a global reach, a specialism in project cost management, and a neatly complementary presence in the major markets.

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David Barwell, regional chief executive of AECOM, tells Construction Week that the deal is very much a global acquisition, rather than one dedicated to a specific region, and insists that Davis Langdon can benefit from its global reach and deep resources.

In turn Davis Langdon’s market-leading attribute in project assessment should satisfy a growing demand from clients.

“Our clients had required more and more expertise in the commercial management of projects, including very complex projects requiring a disciplined approach,” he explains. “Their main concerns are still cost, time and quality.

“Our operations in the region had been more partnering with companies like Davis Langdon. Then you ask: ‘what would an integrated offering look like?’

He adds that AECOM looked at the list of clients of possible acquisitions, and found that the list of those who had worked with Davis Langdon was particularly eye-catching.

“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.”

Davis Langdon’s visibility in the market had made it “the go-to company and the number one brand,” he says.

“When we came to looking at companies Davis Langdon was top of the list and we were very pleased with the response when we approached the company, and the clients have been pleased too.”

Barwell says part of this good response is down to the fact that some clients prefer to sit opposite a single entity in the meeting room, rather than a joint venture – the most popular model of business for any company entering the region.