Leonard Green Set to Acquire Cumming Group
Leonard Green & Partners is close to acquiring construction and infrastructure consultancy Cumming Group from New Mountain Capital in a deal valued at approximately $3bn including debt, with the transaction expected to be formally announced in the coming weeks, according to a report by the Financial Times cited in Private Equity Wire. This deal would represent a significant exit for New Mountain Capital and a notable mid-market private equity transaction amid an environment of higher interest rates.
Details of the Transaction
Cumming Group provides advisory services across large-scale construction and infrastructure projects in more than 35 countries and has been involved in major developments such as the redevelopment of terminal one at New York’s JFK airport. The business employs roughly 3,000 staff globally, and market participants have noted that the consultancy sector remains attractive to private equity investors due to its stable cash flows and defensive demand profile. Advisers on the Cumming Group sale include Jefferies Financial Group, which is acting for New Mountain Capital, according to people familiar with the process as reported by Private Equity Wire.
Background on the Companies Involved
Leonard Green & Partners, which manages roughly $75bn in assets, has been active in services-oriented investments, including a majority stake acquisition in Topgolf Callaway Brands’ Topgolf business earlier this year, valued at around $1.1bn. Cumming Group’s operations highlight a comparable transaction in the sector, such as WSP Global’s acquisition of engineering consultancy TRC from Warburg Pincus, which underscores ongoing investor interest in infrastructure and engineering services assets.
Market Context
The timing of this deal reflects a broader slowdown in private equity-led buyouts, particularly in the mid-market segment, as elevated borrowing costs have constrained leveraged dealmaking, even while overall global M&A volumes remain resilient. As is widely known in the private equity industry, high-quality services businesses with recurring revenues continue to draw buyer interest despite these challenges, according to the report in Private Equity Wire.
