ST. LOUIS—McCarthy Holdings, Inc., an employee-owned national commercial builder, has just signed a letter of intent to acquire St. Louis-based Castle Contracting along with its subsidiary CastleGPS. The new acquisitions provide civil services, utilities, earthwork and trenchless technology directly to owners and contractors, as well as GPS technology for subsurface 3-D utility mapping.
“Civil and infrastructure needs in our communities continue to grow,” said McCarthy central division president Scott Wittkop. “Our clients are asking for effective ways to approach these challenges. The specialized expertise of Castle Contracting and CastleGPS will bring critical value-added services under the McCarthy umbrella to improve client results.”
The St. Louis-based McCarthy specializes in the construction of healthcare facilities, among other building types. As reported in GlobeSt.com, for example, McCarthy was hired to replace the Joplin, MO hospital destroyed by a deadly tornado with the $335 million, 875,000-square-foot Mercy Hospital Joplin. In addition, earlier this year it broke ground on a $37 million expansion project for Capital Region Medical Center, an affiliate of the University of Missouri Healthcare System.
“We’ve collaborated with Castle on a variety of projects over the years and respect their approach,” Wittkop added. And “for Castle, the acquisition opens new business opportunities and increases the company’s growth potential with greater financial resources and operations support.” Castle employees will also become members of the McCarthy ESOP.
Castle will continue as a stand-alone business under the Castle brand name. Upon completion of the acquisition, Mike Myers, a 13-year Castle veteran and its chief operating officer, will become vice president of operations. He will report to Wittkop but continue handling day-to-day administration. “The commitment and capabilities of our employees has placed us on the edge of truly remarkable possibilities,” Myers said. “Joining McCarthy is the next step in civil construction evolution.”
Both companies are privately held and will not disclose the exact terms of the agreement. Castle and CastleGPS will complete as planned all of their projects currently under construction.