Granite Acquires Utah General Contractor Kenny Seng Construction
Granite says the acquisition will expand its construction and materials operations in a high-growth region.
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Infrastructure construction company Granite has acquired Kenny Seng Construction, a general contractor based in Utah.
Seng generates $150 million in annual revenue and has over 200 employees, also operating in Arizona and Idaho. It specializes in construction management and value engineering for heavy earthwork, utility piping and concrete construction.
Granite Construction says the acquisition will expand its construction and materials operations in Utah, a high-growth region. It will also enable the company to tap into Seng’s prime markets of education and civil infrastructure and the private sector.
The deal includes Seng’s hard rock quarry and potential sand and gravel pit. Seng produces 1 million tons of materials each year and has about “45 million tons of reserves and measured and inferred resources,” according to Granite.
Terms of the deal have not yet been disclosed publicly.
“Kenny Seng Construction is a highly complementary business that strengthens our vertically integrated home market strategy in Utah,” said Kyle Larkin, Granite president and chief executive officer. “Their end-to-end service capabilities, strong position in education and civil infrastructure, and established materials platform align well with our focus on building durable, resilient businesses that create long-term value for our shareholders.”
Kenny Seng Construction has been in business since 1985, starting with a backhoe and four employees. Granite says it expects an “adjusted EBITDA margin in the high teens” from Seng.
In noting the recent acquisition on its website, Kenny Seng Construction says, “As a Granite Company, we have combined our deep Utah roots and specialized local expertise with the national resources of America’s Infrastructure Company.”
The acquisition follows Granite’s announced purchases of Mississippi-based Warren Paving and California-based civil contractor and asphalt and aggregates provider Papich Construction. Those purchases announced last August totaled $710 million. The deals included aggregate operations and asphalt plants.
