Two of the nonresidential building industry’s leading engineering firms have joined forces to leverage their similar sizes and market strategies.
KJWW Engineering, based in Rock Island, Ill., and TTG Engineers, based in Pasadena, Calif., will continue to operate under their own banners, but within a newly created holding company with common management.
Ranked 11th and 14th, respectively, on BD+C’s 2014 Engineering Giants list, the firms’ combined revenues last year would have elevated them to No. 4.
The merger unites two companies with a combined 860 employees working in 25 national and five international locations. “The merger gives TTG and KJWW a larger presence throughout the U.S. and strengthens our collective dominance in the healthcare, higher education, government, entertainment, industrial, and transportation markets,” said Zareh Astrouian, PE, SE, president of TTG. Paul VanDuyne, PE, KJWW’s president, added that the merger “allows us to build on those strengths with greater geographic mobility.”
In an interview with BD+C, VanDuyne—who will be CEO of the holding company, with Astrouian its chairman— said the two firms would spend the next 15 months integrating their operational infrastructure, such as accounting, IT, etc. Over that period, the companies will keep their engineering teams intact, while integrating similar practices. VanDuyne was quick to note that the merger is not a prelude to staff reductions. “Human capital is at such a premium right now, and we would be very happy to go through this process without losing a single person.”
VanDuyne believed this merger would allow both companies to serve national end-user clients more effectively. TTG should gain from KJWW’s strengths in such areas as medical equipment planning and architectural lighting, while KJWW should benefit from TTG’s expertise in the entertainment sector. “We feel this is a great opportunity to take a look at a brand new organization. That’s a little bit extraordinary for two $50 million companies,” he said.
The firms’ executives have been discussing this merger for about a year, said VanDuyne. “It started with a phone call about getting together. We met at [KJWW’s] offices in Chicago, and it went on from there.”
KJWW and TTG announced their merger less than a month after Thornton Tomasetti merged with Weidlinger Associates. While VanDuyne didn’t think these events necessarily presaged more consolidation among engineering companies, he did note that “scale” is becoming more important for firms to be relevant to clients in such areas as BIM and sustainability.
It hasn’t been determined whether the firms would eventually operate out of a single headquarters. That seems unlikely, at least in the near future, especially when Van Duyne said “I don’t think this is the last time you’re going to hear from us about expanding across the country.”
Related Stories
Energy | Jul 13, 2022
Electrification of buildings, new and old, furthers environmental responsibility and equity
It’s almost a cliché in our industry, but nonetheless: The greenest building is the one that is already built.
Building Team | Jul 13, 2022
Austin’s newest entertainment and hospitality complex has been made from repurposed shipping containers
A new entertainment and hospitality complex in Austin, The Pitch, has been made out of repurposed shipping containers.
Codes and Standards | Jul 12, 2022
USGBC sets out principles for LEED’s future
The U.S. Green Building Council recently published a report containing principles outlining how LEED will evolve.
Building Team | Jul 12, 2022
10 resource reduction measures for more efficient and sustainable biopharma facilities
Resource reduction measures are solutions that can lead to lifecycle energy and cost savings for a favorable return on investment while simultaneously improving resiliency and promoting health and wellness in your facility.
Office Buildings | Jul 12, 2022
Miami office tower nears completion, topping off at 55 stories
In Miami, construction of OKO Group and Cain International’s 830 Brickell office tower is nearing completion.
University Buildings | Jul 11, 2022
Student life design impacts campus wellness
As interior designers, we have the opportunity and responsibility to help students achieve deeper levels of engagement in their learning, social involvement, and personal growth on college campuses.
Museums | Jul 11, 2022
Denmark opens a museum that tells the stories of refugees worldwide
Located on the site of Denmark’s largest World War II refugee camp, the new Refugee Museum of Denmark, FLUGT, tells the stories of refugees from the camp as well as refugees worldwide.
Codes and Standards | Jul 8, 2022
Inefficient supply chains, outdated project delivery systems hamper construction investment
Constructing and justifying the cost of physical assets such as a manufacturing plant is much more difficult than it was decades ago, according to a report by Steffen Fuchs, senior partner with McKinsey & Company.
Airports | Jul 8, 2022
Phoenix Sky Harbor Airport’s new terminal prioritizes passenger experience and sustainability
McCarthy Building Companies recently completed construction of the final concourse in Terminal 4 at Phoenix Sky Harbor International Airport.
Building Team | Jul 7, 2022
Report explores improving architect/contractor relationship
A new study by the American Institute of Architects and the Associated General Contractors of America focuses on improving the relationship between architects and contractors.