OCI Construction Group to Acquire The Weitz Company
Orascom Construction Industries announced today that it will acquire The Weitz Company, a United States general contractor based in Des Moines, Iowa. Weitz has three core business lines: commercial, federal, and industrial construction, and has typically ranked among the top 50 in Engineering News Record's (ENR) Top 400 Contractors list and is the largest contractor in the state of Iowa. The company generated US$ 681.5 million of revenue in 2011 and prior to the recent economic downturn generated revenues in excess of US$ 1.5 billion. Weitz had a backlog of US$ 787.7 million as at 30 June 2012 with federal projects representing 51%, commercial projects 36% and industrial projects 13% of backlog. All of Weitz's current management and employees will be retained following the acquisition.
The acquisition of Weitz will establish a strong strategic foothold in the United States construction market for the OCI Construction Group. Watts Constructors and the federal business line of Weitz will be combined with Contrack International to expand its geographical reach into the Pacific Rim and Guam. Contrack is a US-based subsidiary of the OCI Construction Group which pursues federal projects overseas primarily in the Middle East and Central Asia.
Leonard Martling, Chairman and Chief Executive Officer of The Weitz Company, said "this is an excellent opportunity for us to accelerate our growth plan. Weitz will be able to significantly expand its activities throughout the United States capitalizing on OCI's financial strength and its industrial and infrastructure track record. In addition to our traditional commercial construction projects, we will be better positioned to pursue larger industrial projects and to target infrastructure concessions and Public-Private Partnership (PPP) projects as a part of one of the world's top global contractors."
Osama Bishai, OCI Construction Group Chief Operating Officer, commented "the acquisition of Weitz will allow the OCI Construction Group to be strategically positioned to undertake a variety of commercial, industrial and infrastructure opportunities in the United States. Weitz will also provide the OCI Construction Group with a solid base to play a major role in the construction of greenfield industrial projects developed by OCI. Weitz is an excellent construction company and we are excited to be able to provide all the necessary support to enable the management team to grow its business."
About Orascom Construction Industries
OCI is one of Egypt's largest corporations employing more than 72,000 people in 35 countries around the globe. The OCI Fertilizer Group owns and operates nitrogen fertilizer plants in Egypt, the Netherlands, the United States, and Algeria and has an international distribution platform spanning from the Americas to Asia. The OCI Fertilizer Group ranks among the world's top fertilizer producers with a production capacity which will exceed 7.0 million metric tons in 2012. The OCI Construction Group provides international engineering and construction services primarily on infrastructure, industrial and high-end commercial projects in Europe, the Middle East and North Africa for public and private clients. The OCI Construction Group ranks among the world's top global contractors.