- The Enterprise
- The Recorder
Facchina Construction Group, a division of La Plata-based Facchina Group of Companies, has been bought by the Mexican construction firm ICA for $60 million.
Paul Facchina Sr., who founded Facchina in 1987, will remain as chairman of the company’s board of directors, but Chief Operating Officer Charles McPherson will now serve as president and CEO, McPherson said. There will be no other changes to the company’s executive structure, he said.
“We’re excited about this transaction and looking forward to the future,” McPherson said. “I have no information that leads me to believe that there will be an change to the operations in Charles County.”
Some of the company’s more prominent projects in the Washington, D.C., region include the 11th Street Bridge reconstruction, Intercounty Connector and U.S. Capitol visitor center. In Florida, the company built the New World Symphony campus expansion and American Airlines Arena, home of the NBA’s Miami Heat.
“I am proud to have built Facchina to where we are now. The best way to continue to develop the Facchina Group is to join forces with an international construction and infrastructure group,” Facchina said in an ICA press release announcing the sale Friday. “ICA can provide the additional technology, engineering talent, financial resources and infrastructure experience that will bring Facchina Group to the next level. This agreement will help us sustain growth, provide quality solutions for our clients and offer advancement opportunities for our employees. I look forward to continuing to serve as chairman of the group and to help make Facchina an outstanding performer in ICA’s broad portfolio of businesses.”
In addition to the $60 million purchase price, ICA has agreed to pay up to an additional $40 million should Facchina meet certain earnings before interest, taxes, depreciation and amortization goals over the next five years, the release states.
“As part of ICA, FCG is expected to be able to bid on and participate in larger projects than in the past, and be able to incorporate technologies that will improve efficiency. It will also have access to additional surety and financing capabilities,” the release states.
Beginning in 2011, ICA already has expanded its operations throughout Latin America, including to Panama, Peru, Columbia and Costa Rica. The purchase of Facchina is the initiative’s first foray into the U.S., the release states.
ICA has participated in U.S. infrastructure projects in the past but not in recent years.
Facchina reported in 2013 about $7 million net income on $230 million in revenue and $8 million in earnings before interest, taxes, depreciation and amortization, the release states. The company’s year-end construction backlog totaled roughly $291 million.
“The Facchina Group is one of the premier medium-sized heavy construction companies in the U.S. Their business dovetails well with ICA’s, and they operate in markets with high growth potential,” ICA’s CEO Alonso Quintana said in the release. “ICA’s strategy for increasing our international operations clearly includes the United States. Facchina’s management team is strong, and will continue to lead the company.”