Hill International is to become a pure-play project management firm after agreeing to sell its construction claims group for $147mn in cash to private equity group Bridgepoint.
The claims division, with approximately 960 professionals in 40 offices worldwide, booked revenue $163.1mn for the 12 months ended September 30, (accounting for 26.3% of Hill’s revenue during that period) and operating profit of $11.1mn.
Net proceeds from the sale will be used primarily to pay off Hill’s outstanding senior debt, which currently totals $145.8mn but which is expected to be lower by the time the deal closes in around 60 days.
“Our Construction Claims Group was the original business that began Hill more than four decades ago, said David L. Richter, Hill’s Chief Executive Officer.
We will miss our friends and colleagues in that business but we know that each of us will be in a better position to grow our two distinct businesses as independent and separate companies.
“This transaction transforms Hill into a pure-play project management firm with a significantly stronger balance sheet,” added Richter.