NEWS HIGHLIGHT
Far East Global buys Gamma
Far East Global Group has announced it has entered into an agreement to acquire a 55 per cent equity interest in Red Holdings Group and its two subsidiaries (Target Opcos and Red Holdings) for a consideration of US$27 million.
August 23, 2011 – Far East Global Group, one of the world’s
largest specialty engineering firms in curtain wall solutions, has
announced it has entered into an agreement to acquire a 55 per cent
equity interest in Red Holdings Group and its two subsidiaries (Target
Opcos and Red Holdings) for a consideration of US$27 million. Target
Opcos owns Quebec City-based Gamma Industries through its parent, Macyro
Group.
Red Holdings Group is engaged in building facade engineering in the United
States. At the end of 2010, the group had been awarded six
private and public sector curtain wall construction projects totaling
over US$100 million in contract value and 800,000 square feet in three
different cities.
Far East Global says it now ranks among the top two or three curtain wall/window wall companies in the U.S. and in the world. Led by the current management team, Target Opcos will operate under the same name in North America and will continue to maintain operations in a number of North American cities, including New York, Miami and Quebec City. The Group expects to increase the number of employees in the U.S. and Canada as business continues to develop. Furthermore, Target Opcos can now provide fabrication capabilities not only from its existing 250,000 square-foot facilities in Miami and Quebec, but also now from the group’s fabrication plant in China, where fabrication capacity is expected to exceed 1,500,000 square feet by mid‐2012.
Over the years, Target Opcos has built some of the most recognizable buildings in the world. These projects range from each of the buildings in New York’s Time Square (except one) including Conde Nast headquarters (one of the first green buildings ever constructed), the Reuters headquarters, Ernst and Young, the Renaissance Hotel, the AOL‐Time Warner Center, the Trump International Hotel in New York’s Columbus Circle, the U.S. Embassy in Ottawa, the Marquis (Florida’s tallest residential building at 67 stories), the Bell Atlantic Tower in Philadelphia and Boston’s 111 Huntington.
According to Red Holdings’ chairman Elliot Kracko, “This combination provides special meaning for our customers. We believe together we can deliver a product with an even higher level of quality. With our worldwide resources, we will rank among the top companies in cost‐competitiveness in North America, giving us a competitive advantage. This will enable us to be an even more formidable competitor for the largest curtain wall construction projects in the hemisphere.”
Far East Global’s chairman, Brad Huang, commented, “We are very excited about Red Holdings’ merger with our U.S. operations. This transaction greatly enhances our group’s speed and ability to capture curtain wall opportunities in North America. The transaction also marks the beginning of Far East Global’s transformation into a leader in delivering efficient energy solutions within the building façade industry.”
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