Two European construction powerhouses announced they are merging portions of their North American operations to form a U.S.-based infrastructure juggernaut. Germany-based Hochtief and Madrid-based ACS Group announced the combination of Broomfield, Colorado-based Flatiron and Spain-based Dragados’ operations in North America to create what would be the second-largest domestic heavy contractor in the U.S., behind only Kiewit. Hochtief and ACS own Flatiron and Dragados, respectively. The integrated company will boast a backlog of $17.2 billion and operations in 24 states and eight Canadian provinces.
Peter Davoren, CEO of New York-based Turner Construction, will serve as chairman of the combined company. Davoren will remain in his role at Turner, which is owned by Hochtief. Flatiron CEO Javier Sevilla will be CEO of the new firm, named Flatiron Dragados.
The move forges even closer ties between the European construction market and U.S. infrastructure builds at a time when American projects have been booming despite a higher interest rate environment. In contrast, European construction activity has languished as the economies of both the United Kingdom and Germany have struggled.
Source: www.constructiondive.com