Flatiron, Dragados to Form “2nd-Largest Engineering/Construction Firm in U.S.”

Flatiron and Dragados plan to merge to form what the companies call the “second-largest civil engineering and construction company in the U.S.”

The two names have already been combined in joint ventures on some of the largest infrastructure projects in the U.S., including the Harbor Bridge replacement in Corpus Christi, Texas, and California’s high-speed rail system.

Flatiron is based in Broomfield, California, and is owned by Hochtief of Germany. Dragados USA is based in New York City and is owned by Spain-based conglomerate ACS Group, which also owns Turner Construction.

The chairman of the new company – to be called Flatiron Dragados – will be Peter Davoren, who also serves as chairman, CEO and president of Turner. Javier Sevilla, the current CEO of Flatiron, will be CEO of the merged company. The deal is expected to close in the second half of this year.

The integrated business has a backlog of $17.2 billion, with revenue of $6.1 billion in 2023. It has a presence in 24 U.S. states and eight Canadian provinces.

“Flatiron and Dragados North America employees have a long history of working together,” said Juan Santamaría, Hochtief CEO.

“The transformation into a new and even stronger entity creates synergies and economies of scale,” a news release says. “The simplified structure will ensure a consistent approach to operations, including tender processes, procurement strategies and risk management, and be value accretive for shareholders of ACS Group and Hochtief.

“The integrated company has a strong track record in civil engineering and construction (including roads and bridges, airports, railways, ports, dams and water treatment plants as well as tunneling projects).”

Ownership of the integrated company will be 61.8% by ACS Group and 38.2% by Hochtief. ACS is the majority shareholder, at 75%, of Hochtief, according to Reuters.