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 systems as well as foundation work. “This represents a highly targeted acquisition in a clear growth market,” says Herbert Lütkestratkötter, CEO of Hochtief.
“Within the next years, the New York metropolitan area will provide numerous new project opportunities for E.E. Cruz within [its] core market segments. Flatiron’s expertise as civil contractor and Turner’s strong local market presence will support E.E. Cruz’s further development in the New York market,” says Tom Rademacher, Flatiron’s CEO.