Granite in US$ 130 million acquisition
By Helen Wright28 December 2012
US contractor Granite Construction is to acquire power, tunnel, water and civil engineering specialist Kenny Construction for US$ 130 million.
Offering a range of services related to power transmission and distribution, construction management, tunnels, trenchless and underground utilities, Kenny is a privately-owned contractor based in Illinois, US.
The company is forecast to report revenues of US$ 270 million for 2012, of which 50% is expected to come from the power sector, 20% from tunnelling and 30% from utilities and other civil projects.
As of December 31, 2012, Kenny's backlog is projected to be approximately US$ 390 million.
Granite president and CEO James Roberts said the deal was an important milestone in the contractor’s strategy to diversify and grow its business.
“The addition of Kenny's expertise in the power, tunnel and underground markets will significantly expand our presence in these key areas as well as enable us to leverage our capabilities and geographic footprint to take advantage of opportunities across the country,” Mr Roberts added.