will be sold
Fletcher Pacific will have aBy Peter Wagner
new name, Dick Pacific, after being
acquired by Pittsburgh's
The purchaser specializes in large-scale projects such as highway and bridge construction. Among its projects are Washington National Airport.Hawaii's biggest building contractor, Fletcher Pacific Construction Co., is getting a new owner and a new name.
In a deal that was to be announced today, Fletcher will be absorbed by Pittsburgh-based Dick Corp., one of the nation's largest industrial contractors. The purchase price was not disclosed.
Fletcher will be renamed Dick Pacific in the transaction, scheduled to close next month.
The acquisition will bring together a mainland company known for bridges, highways and large industrial projects with a local contractor noted for retail, residential and tourism-related projects.
"Our strength and expertise in the Pacific and Asia, and Dick Corp.'s experience and knowledge on the U.S. mainland enable us to increase the diversity of projects and widen the geographic reach for both companies," said Denny Watts, president of Fletcher.
Watts said Dick Pacific will retain its 800 to 1,000 employees and continue to be locally operated, a condition of the sale.
Fletcher, founded in 1939 in Hawaii as Pacific Construction, was acquired by New Zealand-based Fletcher Challenge in 1986. It is a division of Fletcher Construction Group, which last year reported more than $1 billion in revenues.
TALE OF TWO COMPANIES
FLETCHER PACIFIC CONSTRUCTION CO.Founded: 1939
Employees: 800 to 1,000
Earlier sale: Acquired by New Zealand's Fletcher Challenge in 1986
New sale: Being sold to Pittsburgh-based Dick Corp.
Major projects: Neiman Marcus, Ala Moana Center expansion, First Hawaiian Center, Kona's Kealakehe High School.
DICK CORP.Founded: 1922
Major projects: The Venetian, a $128 million hotel in Las Vegas; The $250 million Ronald Reagan Washington National Airport; the $500 million Ohio Turnpike.
The parent company had been looking for a buyer for its Hawaii division, saying it wanted to concentrate its efforts in the South Pacific.
Dick Corp., a 77-year-old company, specializes in large-scale projects, including power, industrial, highway and bridge projects.
Among its projects are the $800 million Pittsburgh International Airport Midfield Terminal, the $250 million Ronald Reagan Washington National Airport, and The Venetian, a $128 million hotel in Las Vegas.
Douglas Dick, president of Dick Corp., said the purchase will allow Dick to expand into new markets on the West Coast, Pacific and Asia.
Fletcher has operations in Hawaii, Guam and Saipan. Despite an ailing economy in Hawaii, the company was anticipating $280 million in revenues this year.
Among Fletcher's projects Hawaii are the Neiman Marcus department store and the retail expansion at Ala Moana Center, First Hawaiian Center downtown, and Kealakehe High School in Kona. The company also holds military housing contracts on Oahu.
Parent company Fletcher Challenge engages in building, pulp, paper and forestry in New Zealand, Australia and Asia.