Flatiron and Dragados plan to merge to shape what the firms name the “second-largest civil engineering and development corporate within the U.S.”
The 2 names have already been blended in joint ventures on one of the crucial greatest infrastructure initiatives within the U.S., together with the Harbor Bridge alternative in Corpus Christi, Texas, and California’s high-speed rail device.
Flatiron is founded in Broomfield, California, and is owned by way of Hochtief of Germany. Dragados USA is founded in New York Town and is owned by way of Spain-based conglomerate ACS Workforce, which additionally owns Turner Development.
The chairman of the brand new corporate – to be referred to as Flatiron Dragados – might be Peter Davoren, who additionally serves as chairman, CEO and president of Turner. Javier Sevilla, the present CEO of Flatiron, might be CEO of the merged corporate. The deal is predicted to near in the second one part of this 12 months.
The built-in trade has a backlog of $17.2 billion, with earnings of $6.1 billion in 2023. It has a presence in 24 U.S. states and 8 Canadian provinces.
“Flatiron and Dragados North The usa workers have a protracted historical past of operating in combination,” stated Juan Santamaría, Hochtief CEO.
“The transformation into a brand new or even more potent entity creates synergies and economies of scale,” a information unlock says. “The simplified construction will be sure that a constant option to operations, together with soft processes, procurement methods and chance control, and be price accretive for shareholders of ACS Workforce and Hochtief.
“The built-in corporate has a robust monitor report in civil engineering and development (together with roads and bridges, airports, railways, ports, dams and water remedy vegetation in addition to tunneling initiatives).”
Possession of the built-in corporate might be 61.8% by way of ACS Workforce and 38.2% by way of Hochtief. ACS is almost all shareholder, at 75%, of Hochtief, in keeping with Reuters.
