Hochtief and ACS Group have agreed on key terms to integrate their respective companies, Broomfield-based Flatiron Construction Corp. and Spain-based Dragados, to form the second largest civil engineering and construction firm in the United States. The new entity will be owned 61.8% by Madrid-based ACS Group and 38.2% by Germany-based Hochtief.
The integration, expected to close in the second half of 2024, will be managed by Peter Davoren, current CEO of Hochtief-owned Turner Construction, as chairman, and current Flatiron chief executive Javier Sevilla as CEO. The combined business will operate with a backlog of $17.2 billion, and recorded revenue of $6.1 billion in 2023.
Juan Santamaría, CEO of Hochtief, said: “Bringing together Flatiron and Dragados creates a strong platform for organic growth in North America. They have the expertise, the long-term clients and are geographically complementary, providing significant synergies and economies of scale. We differentiate our commercial offering through our superior technical resources and skills.”
The merged company, named Flatiron Dragados, will continue serving clients across diverse markets and maintain robust community and stakeholder relationships. The order backlog is heavily weighted toward collaborative projects, with about 40% secured under this model.
Flatiron Dragados will leverage its extensive experience in civil engineering and construction, including roads and bridges, airports, railways, ports, dams, water treatment plants and tunneling projects, to strengthen its market position across the U.S. and Canada.