Aecom (NYSE: ACM) will sell its management services business to the affiliates of American Securities LLC and Lindsay Goldberg for $2.405 billion.
The company also has narrowed fiscal year 2019 EPS guidance from $2.60-2.90 to $2.75 versus the $2.77 analyst estimate. Aecom expects fiscal 2019 adjusted EBITDA and adjusted EPS to approximate the mid-point of the company's prior guidance range, which would reflect approximately $940 million and $2.75, respectively.
Related Link: Aecom To Spin Off Management Services Unit
The company expects to reduce its debt and to execute stock repurchases and maintains its long-term net leverage target of 2.0 times to 2.5 times.
"We are extremely pleased with today's transformative and value-enhancing announcement, which significantly accelerates our planned debt reduction and commitment to repurchase stock," said Michael Burke, Aecom CEO.
Aecom shares were trading up 7.6% at $40 in Monday's pre-market session. The stock has a 52-week range between $38.75 and $24.83 per share.
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