Report by Julia Pastor, in Madrid | Hochtief, subsidiary of Spanish firm ACS, has purchased 51% of Canadian construction company Clark Builders of Edmonton, at a price of €49,9 million. According to Hochtief, the acquisition has been performed through Turner, its subsidiary company in the USA, with the aim of
“advancing on an atttractive growing market. Clark Builders is excellently positioned in Canada and expanding. In partnership with Turner, we can accelerate this expansion,”
has said Frank Stieler, Chairman of Hochtief, explaining the rationale behind the operation. Along with the €49 million, the contract includes an additional sum based on the next five-year earnings. With a workforce of more than 700, Clark Builders generated annual sales of €361.13 million last year. On the reporting date, the company’s order backlog stood at €540.96 million. Established in 1974, Clark Builders is owned by employees of the company, who continue to hold 49 percent of its shares. The company is recognised as one of Canada‘s 50 best managed companies and one of Canada’s 50 best employers.
Clark Builders provides general contracting, design, build and construction management services of structural concrete and pre-engineered buildings as well as architectural metal cladding services. This means the company operates in the same market segments as Hochtief’s subsidiary Turner in the United States.
Clark Builders is headquartered in Edmonton, Alberta and has branches in Calgary, Yellowknife (Northern Territories), and Saskatoon (Saskatchewan). The financial consolidation of the Canadian within Hochtief will be implemented from January 2012.
In opinion of Spanish Banesto’s analysts, the operation was
“partially expected, since it had been announced previously. Nevertheless, the purchase is positive. Its impact on Hochtief shares will be relative.”
Hochtief USA represents some 17,5% of the total estimated sales of Hochtief for 2012, and the acquisition will imply an additional 1,1%.