AECOM, URS Declare Merger Consideration Election Results - Analyst Blog

AECOM Corporation (ACM) and URS Corp. (URS) have announced the initial election results of shareholders regarding their merger consideration. On Jul 14, 2014, AECOM had announced its intention to acquire San Francisco-based URS Corp. for about $4 billion or $56.31 per URS share.

Slated to close on Oct 17, 2014, the deal’s total enterprise value stands at around $6 billion. Post merger, AECOM is likely to become one of the largest companies, in terms of revenues, in the engineering and construction industry.

Per the election results, shareholders of 24,225,337 URS shares, or approximately 35.3% of the outstanding shares, chose to receive AECOM shares. This apart, shareholders of 32,760,392 URS shares, or approximately 47.8% of outstanding shares, chose to accept cash.

However, shareholders of 11,610,181 URS shares, or approximately 16.9% of outstanding shares, did not vote.

URS stockholders who elected to receive AECOM stock will receive shares on a pro rata basis with a combination of AECOM stock and cash for any fractional AECOM shares.

Although the final results of the election process have been determined, the final consideration and allocation regarding the merger will be computed as per agreement.

While Merrill Lynch, Pierce, Fenner & Smith Incorporated and Moelis & Company LLC are acting as financial advisors to AECOM, Gibson, Dunn & Crutcher LLP is the legal consultee. Citigroup Global Markets Inc and Dean Bradley Osborne Partners LLC are financial advisors to URS, while Wachtell, Lipton, Rosen & Katz and Cooley LLP are taking care of the legal matters.

AECOM and URS Corp. both have a Zacks Rank #3 (Hold). Some well-performing machine and general companies worth considering include Middleby Corp. (MIDD) and Barnes Group Inc. (B). While Middleby sports a Zacks Rank #1 (Strong Buy), Barnes Group carries a Zacks Rank #2 (Buy).

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AECOM TECH CORP (ACM): Free Stock Analysis Report
URS CORP (URS): Free Stock Analysis Report
BARNES GRP (B): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis Report
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