Global Infrastructure Solutions acquires Hill International for $173M

Dive Brief:

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

Dive Insight:

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 advisory and management company Palladium. GISI President and CEO Rick Newman said the Hill purchase would expand the company’s consulting platform, which has been a strategic priority since 2016.

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

GISI intends to retain the entire Hill executive team including CEO Raouf Ghali, PR representative Gary Sharpe confirmed in an email, and wrote, “In addition, GISI plans to invest in Hill operations to drive organic growth.”

Ghali said the decision to merge with GISI would enhance the quality of its client 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 the opportunities the industry offers while concurrently enhancing the quality of our client services thanks to GISI’s focus on long-term success,” said Ghali in the release.

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

The two firms have a long history of working on projects around the U.S. and the world. Hill provided administrative support on the Mario Cuomo Bridge project in Tarrytown, New York, and is helping rebuild after Superstorm Sandy damage in Northern New Jersey. Recent projects from GISI’s STO Building Group include construction of DNB Financial’s new office in New York City and a life sciences lab expansion in Devens, Massachusetts.