German-based construction giant Hochtief AG announced on May 11 that two of its U.S. subsidiaries—Turner Construction, New York City, and Flatiron Construction, headquartered in Longmont, Colo.—have entered into a joint venture to acquire E.E. Cruz and Co., a Holmdel, N.J.-based heavy and civil contractor that works in the New York metropolitan area. The acquisition price was $55 million. Cruz has 250 employees; the company reported $140 million in revenue in 2009. Furthermore, E.E. Cruz will be operated as a joint subsidiary of Turner and Flatiron. The company’s primary markets comprise highways, bridges, tunnels, railroad infrastructure, pipelines, and water-supply and treatment
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.