Dive Brief:
- Minneapolis-based builder Kraus-Anderson has acquired Phoenix-based Sonoran Crest Construction, the contractor announced on Feb. 7. The terms of the deal were not disclosed.
- The acquisition will help Kraus-Anderson expand in the Southwest U.S., per the release, which has a growing demand for new healthcare projects. Its addition of Sonoran Crest, named a top regional builder by Healthcare Business review, cements its expansion plans.
- The firm will now be known as Sonoran Crest Construction – A Division of Kraus-Anderson Construction Co., and will be led by a decade-plus veteran of the firm, Jaki Scott. Kraus-Anderson plans to bolster the company’s reputation via its technical resources, which include facilities assessment and sustainability and strategic facility planning.
Dive Insight:
Sonoran Crest has built projects for regional healthcare providers such as Banner Health, Abrazo Health, Honor-Health and Healthcare Trust of America, per the release. Healthcare projects have included ambulatory surgery centers, compounding laboratories, pharmacies, in-hospital construction, imaging, dental, medical clinics and treatment centers.
“Sonoran Crest’s highly regarded reputation, expertise and construction team align beautifully with our strategic planning, and as importantly, with our existing culture and core purpose of building enduring relationships and strong communities,” said Al Gerhardt, Kraus-Anderson’s president, in the release. “The expansion will further cultivate a solid footprint by leveraging synergies and diversified capabilities to capitalize on a dynamic regional market.”
The acquisition is one in a slowing trend of M&A activity that boomed during a time of lower interest rates in 2021 and 2022. Tristan Tahmaseb, vice president at ButcherJoseph & Co., a St. Louis-based boutique investment banking firm, said the boom was due in part to the $1.2 trillion Infrastructure Investment and Jobs Act, the $52 billion CHIPS Act and the $485 billion Inflation Reduction Act.