California Construction News staff writer
ACS Group and Hochtief, two European construction companies, have announced a merger that will create the second-largest civil engineering and construction company in the United States.
About 62 per cent of the ownership of the combined company will be held by ACS Group and the remainder by Hochtief. The boards of Hochtief and ACS have approved the transaction, but it will be finalized later in 2024, the firms said in a joint statement.
The new company, named Flatiron Dragados, will be managed by chairman Peter Davoren and the current CEO of Flatiron, Javier Sevilla, will serve as CEO.
“The operation aims to simplify the group’s structure of the civil engineering activity in North America, facilitate the relationship with different stakeholders and promote administrative and financial synergies,” ACS said in a news release.
The company has a long-standing presence in 24 states of the United States and eight Canadian provinces. At the end of the June, the integrated business reported a project a backlog of US$17.2 billion and revenue of US$3.1 billion.
Flatiron and Dragados have also been joint venture partners and currently are in a joint venture as prime contractor for Harbor Bridge in Corpus Christi, Texas, and for Construction Package 2-3 of the California High Speed Rail project.
“Bringing together Flatiron and Dragados creates a strong platform for organic growth in North America,” Hochtief CEO Juan Santamaría said in the statement. “Flatiron and Dragados North America employees have a long history of working together.
“The new company will have the most respected and recognized value proposition in its sectors, having delivered renowned projects across the United States and Canada, and can look forward to an even stronger future.”
