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Aecom (ACM) - Get AECOM Report shares on Monday climbed after the Los Angeles engineering and construction giant said it planned to sell its management-services arm for $2.4 billion.

Aecom's stock price shot up 6.3% to $39.50 after the company unveiled the deal with private-equity firms Lindsay Goldberg and American Securities.

The deal price is an 11.6-times multiple of Aecom's expected fiscal 2019 adjusted earnings before interest, taxes, depreciation and amortization, the company said in a statement.

Aecom's management services unit in 2018 generated $3.69 billion of revenue and accounted for 18% of its sales, Reuters reported. The unit works with the federal government, providing logistics and technical support.

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Aecom said would use the proceeds from the sale to buy back stock and pay down debt. The company is in the midst of a larger debt-reduction plan, under which it plans to reduce leverage by 2.1 percentage points by the end of fiscal 2020.

The announcement of the deal comes as Aecom is facing pressure from activist investors. Starboard Value has been pressuring the company not only to spin off its management-services unit but its construction and design services arms as well.

"With this transaction and expected record fourth-quarter free cash flow, our balance sheet will be strengthened and we will have greater flexibility to deploy capital in the future," added Troy Rudd, Aecom's chief financial officer, in the statement.