Terratest strengthens its position in the US market with the acquisition of ASAP
Madrid, April 8, 2021.- TERRATEST, a leading international group in special foundations, soil improvement, microtunneling and the environmental sector, has successfully completed the acquisition of the american company ASAP, strengthening its position in this market, in which it has grown significantly since the acquisition of Geostructures in 2018.
The acquisition of ASAP forms an integral part of the strategic plan that TERRATEST implemented after the entry of NAZCA CAPITAL in the company, with one of the main objectives being to grow the North American market, where Geostructures, a Virginia-based company acquired in 2018, has doubled in size since it joined the TERRATEST group in January of that year. Following the acquisition of ASAP, TERRATEST expects to reach sales in this market of over US$ 80 million in 2021.
ASAP, a company highly specialized in geotechnical solutions and leader in earth retention technologies, has a broad customer base in the state of Florida, and develops two-thirds of its activity for public sector customers. Founded in 2006 and with headquarters in Miami and Belle Glade, ASAP has an ambitious growth plan that will benefit from the Biden Administration’s US$1.9 trillion stimulus program, which includes large investments in infrastructure.
ASAP expects to reach sales of more than US$ 21 million in 2021, with profitability and cash flow above the average of its competitors and expects to double the turnover in the next two years helped by the positive expectations of its market, the introduction of technologies from TERRATEST group, and the important commercial synergies foreseen with Geostructures. Both TERRATEST group’s American companies will initially maintain their recognized commercial brands, and their management independently, with the current management team remaining at the head of ASAP.
To finance the acquisition, TERRATEST has used a combination of local financing and a capital contribution from its shareholders.
Enrique Torres, CEO and president of TERRATEST, says that “the acquisition of ASAP represents an important step forward in our strategy in the United States, and allows us to geographically complete our presence in the East Coast market, where we already work with Geostructures in twelve states. Florida is a very interesting state for the group and ASAP is a company with great technical capabilities, which will undoubtedly be strengthened by accessing Terratest’s group technologies. We appreciate the valuable support provided by Nazca in the execution of this deal, and the commitment of all the shareholders who continue to fully back Terratest and the development of our business plan, including strategic acquisitions like this one.”
Founded in 1959, TERRATEST is a Spanish group, with a strong international presence, leader in Special Foundations, Soil Improvement, Microtunneling and the Environmental Sector. It develops its activity in the field of geotechnical engineering, being one of the few companies in the world that covers the entire range of technologies in foundation systems, drilling and ground treatment, to offer comprehensive solutions to geotechnical problems of any type and size.
It is the 5th largest operator in the world in this market, with a presence in 25 countries, and develops more than 85% of its activity outside of Spain, with projects in Europe, Latin America, the Middle East, Africa and, since 2018, in the US following the acquisition of Geostructures. It currently has more than 1,600 employees. TERRATEST expects to exceed €270 million sales in 2021.