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Dive Brief:
- Turner Construction, the largest contractor by revenue in the U.S., has turned its attention overseas and acquired Ireland-based Dornan Engineering Group in a play to increase its dominance in advanced technology builds.
- New York City-based Turner said it acquired 100% of the specialty mechanical, electrical, instrumentation and commissioning engineering contractor that is projected to deliver approximately $760 million in work in 2024. Dornan counts 1,000 direct employees with operations in Ireland, the United Kingdom and Europe, including the Nordics region.
- The deal comes with Dornan’s backlog of approximately $1.2 billion, which is centered on complex large-scale projects in the advanced technology sector, including data centers and biopharma facilities. Turner has been a major player in advanced technology builds in the U.S. and said in the release that it wants to expand that segment globally, starting in Europe.
Dive Insight:
“Dornan brings incredible strength to Turner and is an important part of Turner’s strategy to serve clients wherever their needs are,” said Peter Davoren, Turner’s president and chief executive officer, in the news release. “The combination of Turner and Dornan will enable us to offer a broader range of services and solutions that our clients seek in Europe.”
The companies didn’t disclose the price of the deal, but it comes at a time when at least one major contractor, Australia-based Lendlease, has retreated from doing business internationally and is now selling off its overseas business units.
The move also emerged as the U.S. construction market has continued to show strength, despite an elevated interest rate environment, on the back of government stimulus programs including the $1.2 trillion Infrastructure Investment and Jobs Act, the $52 billion CHIPS and Science Act and the $485 billion Inflation Reduction Act.
In contrast, European construction markets have broadly struggled. In the U.K., for example, the sector has had the most bankruptcies of any industry, with 4,287 in 2024. That amounts to one in five construction firms going out of business, according to trade publication Roofing Today.
The construction industry in Germany, Europe’s biggest economy and third globally behind only the U.S. and China, has also struggled mightily as of late, with building permits down nearly 40% since May 2022. Turner itself is owned by Germany-based Hochtief.
Even Europe-based firms that have had success have pointed to the United States as the source of their biggest and best deals. Sweden-based Skanska, for example, highlighted the strength of its infrastructure projects in the U.S. as a reason behind its surging profits in the second quarter.
This is Turner’s second acquisition of an overseas firm. It acquired 100% of U.K.-based project management firm Real PM in 2019. It also has a majority stake in Canada-based Clark Builders and runs a Turner office in Istanbul, Turkey.
A U.S. backer
Amid that environment, a deep-pocketed U.S.-based backer would be a tempting suitor for many construction firms.
“Our employees and clients will benefit greatly as Dornan joins the Turner family of businesses,” said Dornan CEO Brian Acheson in the release. “They will also benefit from the increased scale of Dornan as part of a combined group with over $18 billion of turnover. Similarly, our employees will find increased opportunity provided by Turner to grow Dornan. I am genuinely excited and really looking forward to our future together.”
In an email to Construction Dive, Turner spokesperson Chris McFadden said the firms’ “combined scale and increased range of services enhance Dornan’s and Turner’s ability to deliver work in Europe.”
McFadden said that Turner, which has completed nearly $11 billion in volume in data centers, EV battery plants, semiconductor fabs, industrial builds and biopharma construction in the last two years in the U.S., has identified $20 billion of advanced technology project opportunities in Europe.
“Growing use of artificial intelligence, the need for faster processing, increased remote work and learning, and other market demands will drive market growth for data centers and semiconductors,” McFadden said. “Growth in sustainable mobility will drive ongoing investment in industrial manufacturing facilities. The biopharma market will continue to expand as clients explore new uses of existing products and develop new products that provide care for rare and common diseases.”
The deal, announced Wednesday, is subject to regulatory approval by the European Union.
