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Dive brief:
- Builder Kraus-Anderson of Minneapolis has acquired Phoenix-based Sonoran Crest Constructionthe contractor announced on February 7. Terms of the deal were not disclosed.
- The acquisition will help Kraus-Anderson expand in the southwestern United States, the statement said, which has growing demand for new healthcare projects. Its addition of Sonoran Crest, named best regional builder by Healthcare Business Review, solidifies its expansion plans.
- The company will now be known as Sonoran Crest Construction – A Division of Kraus-Anderson Construction Co., and will be led by over a decade company veteran, Jaki Scott. Kraus-Anderson plans to strengthen the company’s reputation through its technical resources, which include facility assessment and sustainability and strategic facility planning.
Diving knowledge:
Sonoran Crest has created projects for regional healthcare providers such as Banner Health, Abrazo Health, Honor-Health and Healthcare Trust of America, according to the release. Healthcare projects have included ambulatory surgery centers, compounding laboratories, pharmacies, hospital construction, imaging, dental clinics, medical and treatment centers.
“Sonoran Crest’s reputation, experience and highly regarded construction team align perfectly with our strategic planning and, most importantly, with our existing culture and core purpose of building lasting relationships and strong communities Al Gerhardt, president of Kraus-Anderson, said in the statement. . “The expansion will further cultivate a strong footprint by leveraging synergies and diversified capabilities to capitalize on a dynamic regional market.”
The acquisition is one in a trend of deceleration in mergers and acquisitions activity which grew during a time of lower interest rates in 2021 and 2022. Tristan Tahmaseb, vice president of ButcherJoseph & Co., a boutique investment banking firm based in St. Louis, said the boom was due in part to the $1.2 trillion infrastructure investment and JOBS Act, the $52 billion CHIPS Act and the $485 billion Inflation Reduction Act of dollars
