LONGMONT, CO-Flatiron Construction Corp., a locally based builder of highways, bridges and other infrastructure throughout North America is changing hands for upwards of $243 million. Netherlands-based Royal BAM Group is selling the company to Hochtief Aktiengesellschaft of Essen, Germany.
The purchase price is US$240 million plus US$1 million in interest per month (starting July 1, 2007) until the transaction reaches financial close, which is expected sometime in the fourth quarter, upon approval from cartel authorities. In 2006, Flatiron generated annual revenues of approximately US$626 million.
For Hochtief, already the No. 1 general builder in the US via its subsidiary Turner Construction, the acquisition gives it a significant presence in the field of civil engineering that will allow it to profit from this nation's multi-billion investment in its infrastructure. Combined with Hochtief's existing businesses, the acquisition also will allow the company to gain a foothold in the growing public-private partnership market in the US and Canada.
“Flatiron is a perfect fit for us,” says Hochtief chairman Herbert Ltkestratkötter. “We now combine decades of civil engineering competence of the Hochtief Group, the international (public-private partnership) know-how of Hochtief PPP Solutions and the broad market position of Turner in US general building, with a well positioned vendor in the US civil engineering market.”
For Royal BAM Group, one of the largest construction companies in the world, the sale is in line with its plan to strengthen its European base. The company recently acquired the Belgian project developer Kairos and the Belgian civil engineer Betonac. Royal BAM's book profit from the sale of Flatiron is US$98.9 million.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
