Gibbons Co., a Salt Lake-based contractor and construction materials producer, has been acquired by Granite Construction Co. of Watsonville, Calif., for $42 million.
A spokesman for Granite said it will operate the acquisition as a wholly owned subsidiary. He said Granite intends to finance the merger through a combination of cash and debt.The 79-year-old Gibbons has annual revenues of $90 million, working mostly in Utah and surrounding states. Described as a "heavy civil contractor," it is also involved in concrete and aggregate production, contract mining, materials testing and environmental work.
"Gibbons is well-managed, has a bright business outlook near term given the current strength of the Utah economy and fits Granite's long-term strategy to expand operations to areas contiguous to our existing branch network," said David H. Watts, president and chief executive officer of Granite.
Granite Construction is also a heavy civil contractor and construction materials producer, constructing highways, dams, bridges, airports and other infrastructure-related projects.
It has offices in California, Utah, Arizona, Nevada and Texas.