GISI to Acquire Hill International in $173M Deal

Abstract

According to an Aug. 16 press release announcing the purchase, the transaction is expected to close in the fourth quarter of this year, transitioning Hill into a privately-held company under GISI's design and CM business unit. Unanimously approved by Hill's board of directors, GISI will pay about $2.85 per share for the company, representing a premium of 62.8%. In its Q2 financial disclosures released on Aug. 9, Philadelphia-based Hill reported a net income improvement of $1.4 million and a 70.9% increase to its adjusted EBITDA compared to the same period last year. As a parent company, GISI's structure allows for its subsidiaries-which includes contracting firm STO Building, GEI Consultants, Inc, and The LiRo Group, among others-to operate as their own brands, with added support and resources from GISI as needed, explains company spokesperson Gary Sharpe. The company's international program and construction management business will significantly expand GISI's relatively new design and CM business unit to a global scale, says Sharpe. In 2020, GISI's deal to buy LiRO was the foundational transaction that launched the business unit domestically. " 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," said GISI president and CEO Rick Newman in a statement. "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 a statement.