In the latest chapter of the industry’s ongoing consolidation saga, two of the top 50 architecture/engineering firms, DLR Group and Westlake Reed Leskosky (WRL), are joining forces, bringing together companies with 1,000 employees in 26 locations worldwide.
This is the second addition to its stable in the last 14 months for Omaha, Neb.-based DLR. In July 2015, it acquired SORG Architects, which works primarily in the Washington D.C. area, and will now operate as DLR Group|Sorg|Westlake Reed Leskosky.
The 112-year-old WRL, founded by the youngest son of U.S. President James Garfield, will extend DLR’s presence into such eastern metros as Cleveland (WRL’s headquarters city), New York, and Charlotte. “Strategically, this increases the geographic reach of both firms,” said Griff Davenport, chief executive of DLR, which turns 50 this year.
Paul Westlake, FAIA, FACHA, WRL’s Managing Principal, added that there is little overlap of practice type specialization or clientele between the two firms, and that he sees “lots of opportunities” for DLR to fatten its nine practices on these new markets. Right before the deal was announced, Westlake informed a university president about the merger, “and he said that the university had three projects on the horizon that fit DLR’s specialties.”
Westlake considered DLR’s K-12 practice to be “the best in the country,” whereas Davenport singled out WRL’s Cultural and Performing Arts practice, a sector where the two firms had worked together on projects previously.
Other practices for the combined firm include Energy Services, Hospitality, Healthcare, Justice, Preservation, Retail, Mixed-Use, Sports, and Office.
As a Senior Principal of the combined company, Westlake will lead its Culture and Performing Arts Studio, and become a member of DLR Group’s board of directors. He told BD+C that he felt this change would return him to his roots as a designer, as well as take full advantage of his experience growing a company. (Westlake opened WRL’s second office, and several others subsequently.)
The merger also provides “ownership” opportunities to WRL’s employees, as DLR is 100% employee-owned, said Davenport.
He and Westlake said the two firms have recognized each other as industry “leaders” for a while. About a year ago, they started talking about working together in some capacity, which evolved into more substantive discussions about merging.
“As we went to through the process it became readily apparent that within our firms is a clear cultural alignment,” said Davenport. Westlake said that the eight or nine people with equity positions at WRL were “excited” about a merger. And a month before the deal consummated, the two companies brought together their respective team leaders in what Davenport called “a cultural exchange,” which turned out better than expected. “There was chemistry beyond just business.”
Several of WRL’s executives assume key management roles in the transition. Phil LaBassi, FAIA, FACHA, a Principal and owner at WRL, will become Global Healthcare Leader and direct that practice for the combined firm. Matt Janiak, AIA, will lead the operations in the Cleveland and New York offices. Paul Siemborski, AIA, will lead business developing and marketing for the Northeast Region. And Glenn Johnson will direct the DLR Group|Westlake Reed Leskosky office in Charlotte.
Tom Gallagher, AIA, who was made an owner at WRL in February, will continue to direct the DLR Group|Westlake Reed Leskosky New York office and lead a studio specializing in lighting and museum design. Gallagher will also lead projects in Asia.
Davenport said his company is keeping its eyes open for new growth avenues that might include acquisitions, which “will continue to be a strategy we consider. Every so often, a firm like WRL comes along.”
Related Stories
| Nov 10, 2014
Clemson, Parsons architecture education programs honored for innovation, long-term impact
The architecture programs at Parsons The New School for Design and Clemson University have been selected as 2014 NCARB Award recipients for developing innovative curricula that merge practice and education.
| Nov 10, 2014
Herzog & De Meuron unveils plan for National Library of Israel
The library’s new home will be a completely new building in Jerusalem, and will combine the functions of a central research center, a venue for indoor and outdoor cultural and educational activities, and a place for digital experience.
| Nov 10, 2014
Hotel construction pipeline hits five-year high
The hotel construction pipeline hit a five-year high in the third quarter, clocking in at 3,516 projects and 443,936 rooms, Lodging Econometrics reports.
| Nov 7, 2014
Arts college uses creative financing to build 493-bed student housing
Many states have cut back funding for higher education in recent years, and securing money for new housing has been tougher than ever for many colleges and universities. A recent residence hall project in Boston involving three colleges provides an inspiring example of how necessity can spawn invention in financing strategies.
| Nov 7, 2014
Prefab helps Valparaiso student residence project meet an ambitious deadline
Few colleges or universities have embraced prefabrication more wholeheartedly than Valparaiso (Ind.) University. The Lutheran-based institution completed a $27 million residence hall this past summer in which the structural elements were all precast.
| Nov 7, 2014
World's best new skyscraper: Sydney's vegetated One Central Park honored by CTBUH
The Jean Nouvel-designed tower tops the list of 88 entries in the 13th annual Council on Tall Buildings and Urban Habitat Awards.
| Nov 7, 2014
NORD Architects releases renderings for Marine Education Center in Sweden
The education center will be set in a landscape that includes small ponds and plantings intended to mimic an assortment of marine ecologies and create “an engaging learning landscape” for visitors to experience nature hands-on.
Sponsored | | Nov 6, 2014
To build your strongest team, don't hire clones
To attract and keep talented individuals who are different than you, Entrepreneur magazine suggests a few foundational principles. SPONSORED CONTENT
| Nov 6, 2014
Hines planning tall wood office building in Minneapolis
The Houston-based developer is planning a seven-story wood-framed office building in Minneapolis’ North Loop that will respect the neighborhood’s historic warehouse district look.
| Nov 6, 2014
Studio Gang Architects will convert power plant into college recreation center
The century-old power plant will be converted into a recreation facility with a coffee shop, lounges, club rooms, a conference center, lecture hall, and theater, according to designboom.