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Dive brief:
- Acciona, a Madrid-based contractor company specializing in sustainable infrastructure, has reached one agreement to acquire 80% of Vertical Earthan infrastructure builder based in Cumming, Georgia, according to an announcement by Acciona on Wednesday. The dollar value of the deal was not disclosed.
- The deal, which is expected to close by the end of the year, will help Acciona plant its flag in Atlanta as a strategic hub for the growth of its infrastructure division, according to the announcement.
- Acciona expects the addition of Vertical Earth to boost its self-execution capabilities while also giving it access to local talent and suppliers, according to the company.
Diving knowledge:
Founded in 1997, Vertical Earth generated $217 million in revenue by 2025, according to Acciona, and employs more than 600 professionals in Georgia and Florida. As part of the deal, Brett Johnson, founder and CEO of Vertical Earth, will retain his role as chief executive and a 20% stake in the company.
The move represents another step in the active M&A cycle for contractors across the US as sectors such as water, interiors and infrastructure take off. It also comes amid an attractive environment for foreign investment as international companies seek to enter the construction market.
Indeed, Acciona cited the strength of the US infrastructure market as a key factor in the decision. The country accounts for 20% of the global infrastructure industry, according to the company, and represents a potential hiring of $303 billion this year. Acciona also aims to capitalize on the Department of Transport’s plans to invest in the south-east.
“Vertical Earth brings deep local knowledge, proven project experience and strong technical capability that complement ACCIONA’s global experience in infrastructure,” said Carlos Planelles, CEO of Acciona’s Infrastructure Unit in North America, in the press release. “The deal reflects our confidence in the US market and strengthens our ability to deliver complex and high-profile projects.”
Currently, Acciona participates in the $4.6 billion SR 400 Express Lanes project in Georgia as part of a JV with ACS Infra and asset manager Meridiam.
