Global Infrastructure Solutions acquires Hill International for $173 million

Diving Brief:

  • Investment group Global Infrastructure Solutions Inc. will acquire Philadelphia-based construction manager Hill International for $173 million in cash, according to a statement. The merger aims to strengthen both companies’ global and fee-based infrastructure consulting services.
  • The deal will allow New York-based GISI – the largest private construction manager in the commercial, industrial and healthcare building markets – to expand its consulting services and advance its global diversification goals, according to the press release. Hill, one of the largest construction management companies in the United States, will benefit from access to operational expertise to accelerate its growth.
  • GISI will pay $2.85 per share for public company Hill, representing a 62.8% premium to its closing price on August 16, according to the press release. The acquisition is expected to close in the fourth quarter of 2022, pending regulatory review.

Overview of the dive:

Hill marks GISI’s fourth strategic merger in the past year, according to a company press release.

The other three acquisitions include Woburn, Massachusetts-based civil engineering firm GEI, Hong Kong-based engineering consultancy JRP, and Australian consulting and management firm Palladium. GISI President and CEO Rick Newman said the purchase of Hill would expand the firm’s advisory platform, which has been a strategic priority since 2016.

Newman said “Hill’s uniqueness as a fee-based management company, combined with its technical and managerial expertise, makes the company a welcome addition to the GISI family.”

GISI intends to retain all of Hill’s management team, including CEO Raouf GhaliPR representative Gary Sharpe confirmed in an email and wrote, “Additionally, GISI plans to invest in Hill’s operations to drive organic growth.”

Ghali said the decision to merge with GISI would improve the quality of its customer services. Hill’s board of directors unanimously agreed to the move.

“By joining the GISI family of companies, Hill will be well positioned to continue to take advantage of industry opportunities while simultaneously improving the quality of our customer services through GISI’s focus on success at long term,” said Ghali in the Liberation.

Upon completion of the transaction, Hill will become a private company under GISI and Hill’s shares will no longer trade on the New York Stock Exchange.

Both companies have a long history of working on projects in the United States and around the world. Hill provided administrative support on the Mario Cuomo Bridge project in Tarrytown, New York, and is helping rebuild after damage from Storm Sandy in northern New Jersey. Recent projects by GISI’s STO construction group include the construction of DNB Financial’s new office in New York and the expansion of a life sciences laboratory in Devens, Massachusetts.

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