Deal to close in two to three months.
Israeli developer Shikun & Binui has acquired Pittsburgh, Pennsylvania-based Infrastructrure and Industrial Contractors (i+iconUSA) as a means to increase its footprint in the US infrastructure market.
Shikun & Binui CEO Eyal Cohen said that the deal is slated to close in two to three months. He declined to comment on the financial terms of the acquisition, or the company’s US growth strategy.
“S+B will leverage its integration with i+iconUSA to create high-quality partnerships that will allow it to pursue both P3s and large design-build projects,” Cohen said.
Notably, a consortium comprised of Shikun & Binui, ACS and InfraRed Capital Partners was in 2015 chosen to design, build, finance, operate and maintain the estimated $1 billion SH288 Fast Lanes P3 project located in Houston, Texas.
“S+B will leverage its integration with i+iconUSA to create high-quality partnerships that will allow it to pursue both P3s and large design-build projects,”
— Eyal Cohen, CEO, Shikun & Binui SBA
The i+iconUSA acquisition follows the departure of both Skansa and AECOM from the US P3 market late in 2018.
Skanska president and CEO Anders Danielsson told analysts during a November call, that the company intended to exit its US energy business, as well as cease bidding on US P3 projects. Skanska, Danielsson said, had determined that the US energy sector had not developed as anticipated, and that certain P3 projects were not attractive from a profit standpoint.
That same month, AECOM chairman and CEO Michael S. Burke said announced that the company would exit more than 30 countries in order to concentrate on markets where it has the most competitive advantage.