Hill Int'l to finalise deal forming new company
Hill International announced that it will finalise a transaction that will see its consultancy division form a fully independent company within the next month
Hill International announced that it will finalise a transaction that will see its consultancy division form a fully independent company within the next month, a senior official said.
Benjamin Highfield, Senior Vice President, Hill International told Construction Week at a roundtable on Tuesday that the firm’s consultancy business will be breaking away from Hill International to become a stand-alone company based out of the UK.
“We will, in two months’ time, be wholly independent of Hill as a stand-alone company based out of Britain. And we’ve been purchased in a management backed private equity transition.
“All of our nearly 1,000 consultants that deal with this market will be moving into the independent company. The deal is due to be completed within the next month or so,” he said.
Initially made of two groups, Hill was previously divided between a project management business and consultancy services. After the deal is finalised, all services pertaining to the consultancy side will be operated in full by the new entity, which will be launched under the name of HKA.
“It has been communicated to our clients that this is a pending transaction though it has not been closed,” Highfield said.
The new company will be London-based, though the existing 30 or so offices that were previously under Hill’s consultancy business will remain in operation, including those in the region.
“Everything will remain the same, including the people, offices and service. The only difference is that we will be an independent company.”
When asked if HKA came out of the increase in dispute cases seen in the last year, he said: “I think it was a natural progression. We have always had the project management business working along side the consultancy service, and though we were helping each other, we were overlapping a lot.
“This new business will help us move forward absent of those conflicts.”
Highfield does however believe that arbitration cases have increased over the past year and will continue to increase in the next couple of years, a sentiment echoed by other industry leaders.
He concluded that the new company will be backed by both private equity and the management and added: “That’s where we will be in the next month or so. The transaction has been announced, though it has not been closed.”