Madrid-based construction giant ACS Group says it is integrating its US civil engineering and construction businesses by combining Dragados with Flatiron Construction into a single operation.
There had already been close ties between the companies. ACS owns Dragados and is also the majority owner of Hochtief, the German-based contracting company that owns Turner Construction.
Flatiron and Dragados have also been joint venture partners and are currently the prime contractor for the Harbor Bridge in Corpus Christi, Texas, and construction package 2-3 of the California High Speed Rail project.
ACS and Hochtief said they had agreed to terms in which the ACS Group would own 61.8% and Hochtief 38.2% of the new combined company, called Flatiron-Dragados.
Broomfield, Colo.-based Flatiron and New York City-based Dragados had combined revenue of $6.4 billion in 2023 and ranked 49th and 37th, respectively, on the Top 400 Contractors ENR.
The recently established entity will be directed by the CEO of Dragados, Javier Sevilla. Peter Davoren, CEO of Turner, will be the chairman of the new company.
A spokesman for Turner said that Davoren will also remain CEO, president and chairman of Turner Construction Co.
In announcing the combination on July 30, ACS said Flatiron-Dragados would become the second-largest civil engineering firm in the US.
“The operation aims to simplify the structure of the civil engineering activity group in North America, facilitate the relationship with the different interest groups and promote administrative and financial synergies,” ACS said.
Turner 2024 Operating Results
Separately, ACS reported results for the first half of 2024 of $450 million in net profit after tax, up 8.1% from the first half of the previous year, on $20.2 billion in sales. due to solid performance, “especially Turner in North America”.
ACS further reported that Turner had first-half sales of $9.35 billion, up 13.5% from the prior-year first half, and pretax profit of $267 million, 38.5% more.
