ACS Group and HOCHTIEF, the respective owners of Dragados and Flatiron, announced that they have agreed on key terms for the combination of the two companies, with ownership of the integrated company held 61.8 percent by ACS Group and 38.2 percent by HOCHTIEF. The company will be managed by Peter Davoren as chairman (in addition to his current role as chairman, CEO and president of Turner) and the current CEO of Flatiron, Javier Sevilla, as CEO. The transaction closing is expected during the second half of 2024.

The merger will create the second largest civil engineering and construction company in the United States.

"Bringing together Flatiron and Dragados creates a strong platform for organic growth in North America," said Chief Executive Officer of HOCHTIEF, Juan Santamaría. "They have the expertise, the long-term clients and are geographically complementary, providing significant synergies and economies of scale. We differentiate our commercial offering through our superior technical resources and skills."

"Flatiron and Dragados North America employees have a long history of working together," he added. "The new company will have the most respected and recognized value proposition in its sectors, having delivered renowned projects across the United States and Canada, and can look forward to an even stronger future."

The company, named Flatiron Dragados, will continue to serve clients across its existing diverse markets and support strong community and stakeholder relationships.

The transformation into a new and even stronger entity creates synergies and economies of scale. The simplified structure will ensure a consistent approach to operations, including tender processes, procurement strategies and risk management, and be value accretive for shareholders of ACS Group and HOCHTIEF.