Dive Brief:
- KJWW Engineering will merge with TTG Engineers, creating a 900-employee workforce with 25 locations in the U.S. and five international, according to statement released by KJWW.
- The two $50-million firms will continue to operate in their current office locations under common management and will not reduce staff as a result of the merger, Building Design & Construction reported. They will keep their respective names and operate under the same holding company.
- The KJWW-TTG merger will allow KJWW, based in Rock Island, IL, to benefit from TTG’s experience in the entertainment sector, according to BD&C, while TTG, based in Pasadena, CA, will benefit from KJWW’s medical equipment planning and architectural lighting strengths.
Dive Insight:
KJWW-TTG’s announcement comes in the recent wake of the Thornton Tomasetti-Weidlinger Associates merger. KJWW President Paul VanDuyne told BD&C that although he didn’t think the two mergers necessarily meant more consolidation among engineering companies was coming soon, "scale" is becoming more important for firms to be relevant to clients in areas including BIM and sustainability.
"We chose a merger with KJWW because of its strong reputation and similar market focus," Zareh Astourian, president of TTG, told BD&C. "Culturally, it was a great fit. We both share the same commitment to our clients and quality standards."
VanDuyne added, "We saw similarities with TTG and know that by leveraging our similar visions, cultures, and market strategies we can serve additional world-class clients and talent."
As for the future of the new engineering firm, Van Duyne told BD&C, "I don’t think this is the last time you’re going to hear from us about expanding across the country."
There has been a wave of construction and engineering mergers this year, as M&A activity soared 73% between the first and second quarter of 2015, according to a PricewaterhouseCoopers report. The second quarter saw 64 mergers and acquisitions of more than $50 million.