Skanska acquires construction company in Indiana, USA, with a revenue of about USD 500 M, about SEK 3.2 billion
Skanska USA has acquired the construction company Industrial Contractors Inc. and its affiliated companies, based in Evansville, Indiana, for USD 135 M, about SEK 870 million on a debt free basis. Industrial Contractors Inc. is a leading contractor in the commercial, industrial and power markets of the Midwest. The company employs 2,400 people and in 2011 the revenues are estimated to be approximately USD 500 M, about SEK 3.2 billion. The transaction was signed and closed yesterday, December 28, 2011.
Industrial Contractors Inc. operates three separate business streams: Power & Energy, Commercial & Light Industrial and Heavy Industrial. All three streams add valuable capabilities and possibilities to Skanska. The company has a solid reputation in the Midwest, with a long history of high-profile, complex work. Industrial Contractors Inc. has built and maintained major facilities for some of the largest and most respected companies in the industrial sector. In the power and energy sector, they recently completed a natural gas-fired, combined cycle facility in Dresden, Ohio, and the coal gasification facility for Duke Energy in Edwardsport, Indiana.
“This follows our strategy to increase our portfolio of services and expand the geographical presence of our civil operations. Industrial Contractors Inc. has a strong reputation in sectors we want to grow in, such as power and industrial. This is overall an exceptionally well run company with a good financial performance and a culture that supports our core values”, says Johan Karlström, CEO and President.
Industrial Contractors Inc. was founded in Evansville in 1964 by Charles Braun and has been consistently profitable. Today the son of the founder, Alan Braun, is Chairman and Chief Executive Officer.
“Skanska is a company with a family-feel which is one of the many things we like. Our cultures are very similar and we are aligned when it comes to safety, ethics, quality, giving back to the community, and environmental responsibility,” says Alan Braun, Chairman and CEO of Industrial Contractors.
Industrial Contractors Inc. will be included as an operating unit within Skanska USA Civil under the name, Industrial Contractors Skanska. The unit will then make up about a third of Skanska USA Civil. The current management team of Industrial Contractors Inc. will remain in place and the president Denny Quinn will continue to run Industrial Contractors Skanska’s day-to-day operations. Alan Braun will stay on as an active advisor to Industrial Contractors Skanska’s Midwest operations as well as Skanska’s national civil operation.
Skanska USA is one of the leading development and construction companies in the country, consisting of four business units: Skanska USA Building, which specializes in building construction; Skanska USA Civil, specialized in civil infrastructure; Skanska Infrastructure Development, which develops public-private partnerships; and Skanska Commercial Development, which develops commercial development projects in select U.S. markets. Headquartered in New York, Skanska USA has approximately 7,400 employees and its 2010 revenues were SEK 34.3 billion.