Combined firm offers a broader geographic
footprint and deeper industry expertise across capabilities and end
markets
Leadership transition to position the combined
business for growth
Gannett Fleming, a portfolio company of OceanSound Partners
(“OceanSound”) and a leading engineering and infrastructure
solutions provider, and TranSystems, a provider of
transportation-focused engineering and infrastructure services,
today announced that they have completed a strategic merger.
Together, Gannett Fleming and TranSystems (collectively, the
“Company”) create a best-in-class organization with approximately
$1.3 billion in revenue and a highly skilled workforce of more than
5,000 employees.
The combination creates a leading national provider of
infrastructure consulting services with complementary customers and
geographic coverage along with deepened capabilities across the
transportation end market, enhancing the Company’s ability to serve
its base of government and commercial clients across North America.
The Company establishes meaningful scale across several critical
sub-verticals within the transportation end market including
highways, bridges, mass transit, freight rail, and airports.
Gannett Fleming and TranSystems are both recognized as top 20
providers on the Engineering News-Record (“ENR”) rankings for
transportation design services. In addition, the transaction will
accelerate growth through the cross-selling of complementary
services across the water, environmental, and power end markets,
driven by sector expertise and repeat business from long-standing
clients.
In conjunction with the closing of the transaction, Bob Scaer,
Gannett Fleming's Chief Executive Officer, has retired and
transitioned to the Board of Directors. In his new role, Mr. Scaer
will provide ongoing support which will include helping to identify
and recruit a new CEO and assisting the management team with
business development, customer relations, and acquisition
activities.
Tim Rock, Chief Executive Officer of TranSystems, has become
President and Chief Operating Officer of the Company alongside Jim
Nevada, President and Chief Financial Officer. They will jointly
lead the Company while the Board leads the search for a new
CEO.
“The combination of Gannett Fleming and TranSystems creates a
preeminent engineering firm with the scale and depth to solve our
clients’ most complex infrastructure challenges,” said Mr. Scaer.
“This merger bolsters our position within bridges, highways,
construction services, mass transit & rail, and program
management and provides our customers with an end-to-end solution
across multiple modes of transportation.”
He continued: “Gannett Fleming is a storied franchise in the
infrastructure consulting market, and I could not be prouder of my
time as the CEO and employee. Since December 2022, OceanSound has
helped us accelerate growth and improve our operational efficiency
well beyond our expectations. As a result, Gannett Fleming has
never been in a stronger position, making now the right time to
transition to the next generation of leadership. We could not have
achieved this growth without OceanSound’s support and partnership
and I look forward to continuing our work together as a member of
the Board of Directors.”
“This is a transformational combination that will better
position us to capture growth in the market, providing our
employees with more career opportunities and our customers with a
broader range of services, including complementary offerings in
facilities, water, and power engineering as part of a larger and
more diversified organization,” said Mr. Rock. “I am confident our
technical excellence, shared cultural values, and passion for
innovation will facilitate integration, contribute to our strategic
value creation initiatives, provide meaningful professional
development opportunities for our employees, and create long-term
value for our communities and clients.”
“When we invested in Gannett Fleming, we intended to capitalize
on its respected franchise in the infrastructure services market
and transform it into a more scaled and differentiated business
positioned at the forefront of industry growth and innovation. With
this transformative transaction, we have taken a major step towards
fulfilling our vision and remain committed to continue building a
premier national infrastructure services company,” said Joe
Benavides, Chairman of Gannett Fleming and Managing Partner of
OceanSound Partners. “On behalf of Gannett Fleming’s Board of
Directors, I would like to express our sincere appreciation for
Bob’s extensive contributions to Gannett Fleming during his 41
years with the Company, including seven years as CEO. His thought
leadership, dedication to innovation, and bold strategy to pursue
the partnership with OceanSound, including the recent transactions,
have substantially strengthened Gannett Fleming’s ability to
continue building on its 109-year legacy.”
Houlihan Lokey, Inc. acted as financial advisor to
TranSystems.
About Gannett Fleming
Gannett Fleming is an architecture, engineering, and
construction (“AEC”) firm partnering closely with our clients on
some of the toughest challenges facing our communities today. We
offer comprehensive infrastructure solutions to a wide range of
markets, including transportation, life sciences, water resources,
education, industrial, federal, power, and energy. Founded in 1915,
we are the employer of choice for 3,000+ of the best and brightest
in the industry. With a focus on making the built environment
safer, as well as more resilient and sustainable, our clients seek
us out for our expertise and prefer us for our personal service,
innovation, and creative minds. For more information, visit
https://www.gannettfleming.com/
About TranSystems
TranSystems provides engineering design and construction
services to enhance the transportation networks and infrastructure
that makes communities more livable today and in the future.
Founded in 1966, TranSystems has professionals in more than 70
offices throughout the United States, bringing strong local
connections, new thinking, and a fresh approach to solving
community challenges across the country. For more information,
visit https://www.transystems.com.
About OceanSound Partners
OceanSound Partners is a New York-based private equity firm that
pursues control investments in technology and technology-enabled
services companies serving government and enterprise end-markets.
OceanSound employs a partnership approach, working closely with
founders, entrepreneurs, and executives of middle-market businesses
to drive transformational growth. For more information, visit
www.oceansoundpartners.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240807953569/en/
FOR GANNETT FLEMING Judy Hricak +1 717.763.7211
jhricak@gfnet.com FOR TRANSYSTEMS Jill Black +1 816.329.8685
jcblack@transystems.com FOR OCEANSOUND Charlyn Lusk +1
646.502.3549 clusk@stantonprm.com