Gannett Fleming, TranSystems Complete Merger
Written by Marybeth Luczak, Executive Editor
(Image Courtesy of Gannett Fleming and TranSystems)
Camp Hill, Pa.-based Gannett Fleming and Kansas City, Mo.-based TransSystems on Aug. 7 reported combining to form a national provider of infrastructure consulting services, bolstering their position within the bridges, highways, construction services, mass transit and rail, and program management markets. The merged firm has more than 5,000 employees and approximately $1.3 billion in revenue, they said.
The two companies bring together complementary customers and geographic coverage, improving their ability to serve government and commercial clients across North America, according to Gannett Fleming, an AEC (architecture, engineering, and construction) firm and portfolio company of OceanSound Partners, and TransSystems, an engineering design and construction services firm. Together they are said to establish “meaningful scale across several critical sub-verticals within the transportation end market including highways, bridges, mass transit, freight rail, and airports,” and to “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.”
Bob Scaer, Gannett Fleming’s CEO, has now retired and transitioned to the combined company’s Board of Directors. He will provide ongoing support, which includes helping to identify and recruit a new CEO and assisting the management team with business development, customer relations, and acquisition activities. Tim Rock, CEO of TranSystems, has become President and Chief Operating Officer of the new company alongside Jim Nevada, Gannett Fleming’s President and Chief Financial Officer. They will jointly lead the company until its new CEO is appointed.
“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,” Bob Scaer said. “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 Tim 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,” said Joe Benavides, Chairman of Gannett Fleming and Managing Partner of OceanSound Partners. “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. 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. served as a financial advisor to TranSystems.
