Italian global infrastructure group 7809 Salini Impregilo has agreed to buy 100% of Lane Industries, an American highways contractor and the “top private asphalt producer” in the US.
Lane, a family-owned business based in Cheshire, Connecticut, was bought for US$406 million and has a turnover of around $1.5 billion. The company has three divisions: asphalt production, road projects and other infrastructure projects, in domestic and international markets.
A statement from Salini said Lane is participating in some of the largest projects in the US, such as in central Florida state with the I-4 Ultimate, a $2.3 billion contract, in which Lane has a 30% stake. In September 2014, 34km Ultimate project, the largest availability payment-based public-private partnership transaction in the United States, reached its financial close. Construction started this year
“The acquisition of Lane represents a further step by Salini Impregilo to expand in the large and attractive US infrastructure market, the company statement said. “It will enable the [Salini] group to create a powerful platform to seize opportunities in a market where having a local presence and a local team of managers it is must to succeed.”
Salini said the Lane acquisition means Salini Impregilo will have a much larger pool of projects. “The US transportation infrastructure market - $130 billion in 2014 - is expected to grow above GDP on the back of a recovering economy, a positive demographic trend and the pent-up demand for significant upgrades and expansions of existing infrastructure after years of underinvestment.”
Salini Impregilo chief executive Pietro Salini said purchase is a milestone for the group. “After the completion of the merger between Salini and Impregilo in January 2014, we demonstrated our ability to integrate businesses, to create value for our shareholders and to achieve our business plan target, profit and enhancement of human resources.”
Salini Impregilo operates in more than 50 countries, has 34,400 employees and has a turnover of around €4.2 billion. Revenue for the first nine months of 2015 totaled nearly €3.4 billion, an 8.4% increase from the €3.1 billion reported for the same period the prior year. Also in the first nine months of 2015, net profit from continuing operations came to €87.8 million versus €45.3 million for the first nine months of 2014.
Salini’s highway projects in the US include the New Gerald Desmond Bridge in Long Beach, in the state of California. The cable-stayed bridge - 610m long and with a main span of around 300m – was completed in July 2012. Salini has a €149 million investment in the project that costed €497 million.
In Europe earlier this year, Salini picked up a €170 million Polish project to design and construct just over 20km of the concrete A1 Motorway, south of Warsaw, near the City of Katowice. Work includes the three junctions of Rząsawa, Lgota and Blachownia as well as four bridges, one railway bridge and 21 viaducts.
Lane, a family-owned business based in Cheshire, Connecticut, was bought for US$406 million and has a turnover of around $1.5 billion. The company has three divisions: asphalt production, road projects and other infrastructure projects, in domestic and international markets.
A statement from Salini said Lane is participating in some of the largest projects in the US, such as in central Florida state with the I-4 Ultimate, a $2.3 billion contract, in which Lane has a 30% stake. In September 2014, 34km Ultimate project, the largest availability payment-based public-private partnership transaction in the United States, reached its financial close. Construction started this year
“The acquisition of Lane represents a further step by Salini Impregilo to expand in the large and attractive US infrastructure market, the company statement said. “It will enable the [Salini] group to create a powerful platform to seize opportunities in a market where having a local presence and a local team of managers it is must to succeed.”
Salini said the Lane acquisition means Salini Impregilo will have a much larger pool of projects. “The US transportation infrastructure market - $130 billion in 2014 - is expected to grow above GDP on the back of a recovering economy, a positive demographic trend and the pent-up demand for significant upgrades and expansions of existing infrastructure after years of underinvestment.”
Salini Impregilo chief executive Pietro Salini said purchase is a milestone for the group. “After the completion of the merger between Salini and Impregilo in January 2014, we demonstrated our ability to integrate businesses, to create value for our shareholders and to achieve our business plan target, profit and enhancement of human resources.”
Salini Impregilo operates in more than 50 countries, has 34,400 employees and has a turnover of around €4.2 billion. Revenue for the first nine months of 2015 totaled nearly €3.4 billion, an 8.4% increase from the €3.1 billion reported for the same period the prior year. Also in the first nine months of 2015, net profit from continuing operations came to €87.8 million versus €45.3 million for the first nine months of 2014.
Salini’s highway projects in the US include the New Gerald Desmond Bridge in Long Beach, in the state of California. The cable-stayed bridge - 610m long and with a main span of around 300m – was completed in July 2012. Salini has a €149 million investment in the project that costed €497 million.
In Europe earlier this year, Salini picked up a €170 million Polish project to design and construct just over 20km of the concrete A1 Motorway, south of Warsaw, near the City of Katowice. Work includes the three junctions of Rząsawa, Lgota and Blachownia as well as four bridges, one railway bridge and 21 viaducts.
