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
CAMP HILL, Pa. & KANSAS CITY, Mo., August 07, 2024–(BUSINESS WIRE)–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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Contacts
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