May 12 2010
HOCHTIEF is expanding its position in the growing market for US infrastructure projects. Via its subsidiaries Flatiron and Turner, the Group has acquired the New York region-based construction company E. E. Cruz and Company Inc. with retrospective effect as of January 1, 2010.
This company specializes in civil construction projects in the New York metropolitan region, where extensive modernization and construction projects for roads, tunnels and bridges are pending. "This represents a highly targeted acquisition in a clear growth market," commented Dr. Herbert Lutkestratkotter, CEO of HOCHTIEF. The Group will manage the company as a subsidiary of its US Group companies Flatiron and Turner. "Together, these three companies will form one of the most powerful players in the competition for forthcoming investments", added Lutkestratkotter. With almost 250 employees, E. E. Cruz posted annual contract revenue of approximately EUR 107.7 million (USD 140 million ) for 2009. The purchase price amounts to EUR 42.3 million (USD 55 million). The company should make a positive contribution to Group earnings from 2011 onwards.
Established in 1984, E. E. Cruz has completed numerous infrastructure projects. These include building and modernizing highways, bridges, tunnels, railroad infrastructure, pipelines, water supply and treatment systems and foundation work. The company has a strong network in the New York and New Jersey regions and good business relationships with public-sector clients.
"The acquisition of EE Cruz supports Flatiron's strategy to further expand our business in regions with high growth potential," said Tom Rademacher, Flatiron's chairman and chief executive officer. "Within the next years the New York metropolitan area will provide numerous new project opportunities for E. E. Cruz within their core market segments. Flatiron's expertise as civil contractor and Turner's strong local market presence will support E. E. Cruz further development in the New York market."
Peter Davoren, Turner's president and chief executive officer, stated, "We look forward to working with E. E. Cruz's talented management team. It is clear that our firms share a commitment to client service, community involvement and place a high value on the talent and importance of our employees."
Ed Cruz, chairman and chief executive officer of E. E. Cruz, commented, "E. E. Cruz is pleased to join with Flatiron and Turner to form a new partnership that will enable us to grow and deliver our high level of service to our current and additional clients in the region."
The financial close on the acquisition took place on May 5th, 2010. HOCHTIEF expects to consolidate the company for the first time in the second quarter of 2010.
Source: http://www.hochtief.com/