Booz Allen sells S&L transportation business

CH2M Hill is buying one of its units, but Booz Allen remains committed to federal transportation market.

Booz Allen Hamilton plans to sell its state and local transportation business for $28.5 million in cash to CH2M Hill, a Denver-based consulting and engineering firm.

The Booz Allen unit specializes in transit systems and had about $50 million in 2010 revenue, according to the company.

Booz Allen made it clear in its announcement that it wasn’t backing away from the transportation market and was going to remain in the federal arena with customers such as the Federal Aviation Administration, Amtrak, the Federal Highway Administration and the National Highway Traffic Safety Administration.

The acquisition fits well with CH2M's transit and rail planning business. “This combined services portfolio creates a strong value proposition for our clients around the world,” said Garry Higdem, president of CH2M’s transportation business.

Booz Allen is ranked No. 9 on Washington Technology’s 2010 Top 100 list of the largest government contractors. CH2M Hill is ranked No. 69.