Dragados North America, a subsidiary of ACS Group, and Flatiron, a subsidiary of Hochtief, announced their integration under a unified brand, Flatiron Dragados, on July 30. This new entity will continue serving clients across diverse markets and enhancing community and stakeholder relationships. The integration combines the strengths of both companies, forming the second-largest civil engineering and construction firm in the U.S.
ACS Group will hold 61.8 per cent ownership, while Hochtief will own 38.2 per cent of the Flatiron Dragados company. The new company will be managed by Peter Davoren as chairman, who also serves as chairman, CEO and president of Turner Construction. Javier Sevilla Roca, the current CEO of Flatiron, will be the CEO of Flatiron Dragrados. The transaction is expected to close in the second half of 2024.
Flatiron Dragados has a robust backlog of USD $17.2 billion as of H1 2024, reflecting significant market presence and capacity. The combined revenue for 2023 was USD $6.1 billion, with USD $3.1 billion recorded in H1 2024. The company boasts a longstanding presence in 24 states in the U.S. and eight Canadian provinces.
Integrating Dragados and Flatiron in North America aims to streamline the group’s engineering and construction activities and foster better relationships with stakeholders. This will result in a better-quality offering for clients, a low-risk commercial approach and higher profitability for shareholders.
Juan Santamaria Cases, CEO of ACS Group and 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.
“Flatiron and Dragados North America employees have a long history of working together. The new company will have the most respected and recognized value proposition in its sectors, having delivered renowned projects across the U.S. and Canada, and can look forward to an even stronger future.”
With a history of collaboration and successful project delivery across the U.S. and Canada, the Flatiron Dragados company entity looks forward to a future of greater accomplishments and contributions to the infrastructure landscape in North America.