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Skanska USA Building Inc. To Acquire BFW Construction Co., Ltd.;
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01/16/2005
Skanska USA Building Inc. To Acquire BFW Construction Co., Ltd.; Acquisition Will Strengthen And Expand Skanska's Building Construction Presence In Southwest
PARSIPPANY, N.J.--April 2, 2003--Skanska USA Building Inc. announced today it has agreed to acquire 100% of the shares of employee-owned construction firm BFW Construction Co., Ltd., located in Temple, Texas. The total purchase price is $19 million, which includes $7.5 million for cash assets in the same amount being acquired from BFW. The transaction is expected to close early in the second quarter of this year.
BFW posted sales in 2002 of approximately $100 million and the company has more than 150 employees. BFW's current order backlog is approximately $172 million.
Founded in 1964, BFW is a full-service construction firm that serves a broad range of clients and has a widely recognized expertise in the areas of education and healthcare. The company has completed more than 225 educational facilities for 55 different Texas school districts and more than 63 projects for Texas colleges and universities. It has completed 67 healthcare facilities combined in Texas and neighboring states.
"BFW is an ideal addition to the Skanska USA Building Inc. family," said Michael J. Healy, President and CEO of Skanska USA Building Inc.
"BFW is a solid player in the Texas construction market with an impressive portfolio of clients and projects," Healy added. "They also have a great management team that has consistently grown the company's profitability."
"Acquiring BFW, which is centrally located in the state, expands our company's presence in the southwest and further strengthens our ability to serve clients in the area," Healy said. "Their depth of experience in serving education and healthcare clients is an excellent complement to our national leadership roles in these important market segments."
BFW will be led by two BFW veterans: Executive Vice President Bob Browder, 49, who will become President and CEO succeeding retiring President and CEO Franklin Kohutek, 72, and Executive Vice President and Chief Operating Officer David Andrews, 51.
"BFW is excited to become a part of Skanska and its rich tradition of construction excellence in the U.S.," said BFW's Bob Browder. "We are confident that the combined core strengths of our firms, our shared entrepreneurial spirits and our long-standing mutual commitments to meet and exceed our clients' needs will quickly propel Skanska into a prominent leadership role in the southwest construction arena. It is also particularly exciting to become a part of a company that continually improves upon its capabilities and is never content with the standards of the past."
BFW's David Andrews noted, "We are looking forward to integrating BFW's operational strengths and experience with Skanska's benchmark standard for quality and efficiency. Joining forces with Skanska gives us the ability to tap their vast nationwide and global resources to build our business even more and to significantly enhance the services and expertise we deliver to our clients."
Skanska also said today it would be consolidating its Houston operations to BFW's Temple location. "We're positioning BFW's office as our primary base of operations in the state, which gives us a new and stronger platform to grow our business in the southwest," Healy said.
Skanska USA Building Inc. is a leading national and local provider of construction, pre-construction consulting, general contracting and design build services to a broad range of U.S. industries, including biopharmaceutical, educational, high-tech, healthcare, transportation and sports and entertainment. The company, part of the Skanska AB global group of companies, is headquartered in Parsippany, New Jersey, and has more than 5,300 employees in the U.S. and revenues of approximately $5 billion.
Skanska AB is a global construction services group committed to finding innovative solutions for its clients. Combining global presence with local expertise, Skanska offers a broad range of services, from project development to construction and facilities management. The Group currently has 76,000 employees and operations in 11 home markets. Sales for 2002 totalled approximately $15 billion.
Contacts
Skanska Tom Crane, 973/285-8004 or BFW Bob Browder, 254/778-8941
