Obayashi announced early last week that it had resolved to acquire 90% of MWH Constructors, which engages in the construction of water treatment facilities in the United States, for €126 million from Oaktree Capital.
In a press release, the firm announced that by making MWH US a subsidiary of Obayashi, the Group will fully develop its business in the water infrastructure construction market in the United States and further enhance its corporate value.
Water infrastructure construction services in the United States is a stable market largely unaffected by economic trends. Against the backdrop of urban population growth and aging infrastructure, an increase in public investments is projected in the years ahead. The Obayashi Group has long been looking to make comprehensive inroads into the market, deeming it as a promising and stable setting that will contribute to the development of its North American construction business.
MWH US is a major construction company in the water treatment facility construction market in the United States. It is especially notable for its extensive track record in the construction of large-scale water treatment facilities and its competitive advantage in the market. By becoming a subsidiary of the Company, MWH US will be able to pursue further growth through the utilization of the Obayashi Group’s technologies, resources, and financial support, as well as cooperation from the Company’s existing subsidiaries in the United States.