Canadian building stalwart Graham Construction has expanded its U.S. presence via a merger with California-based XL Industries, which focuses on advanced technology, life science and healthcare clients.
The deal, announced March 4, will infuse Calgary, Alberta-based Graham with $1.4 billion in backlog from XLI, headquartered in Milpitas, California, in the heart of Silicon Valley. Additional terms were not disclosed.
“This merger marks a pivotal moment in the future of construction,” said Andy Trewick, CEO of Graham, in an XLI news release describing the deal. “By combining our strengths, we will expand our geographic footprint, enhance our service offerings and continue to lead with innovation in project delivery.”
Since launching in 1992, XL Industries has catered to California’s technology clientele, as well as mission-critical projects such as an upgrade to the Lawrence Berkeley National Laboratory in Berkeley, California. Companies under its corporate umbrella include XL Construction, Bradley Concrete, Elevated Construction Services, TimberQuest and Arrow Rental & Supply, according to the release.
XLI said there would be no changes to its brand or leadership, but that it will join Graham’s U.S. Buildings group, comprising Milender White, a real estate company with offices in Southern California and Colorado that joined Graham in 2021, and Graham’s Seattle-area operations. Graham has a U.S. office in Omaha, Nebraska, as well, and a total of 23 offices across North America, according to its website.
Graham, founded in 1926, has over 2,700 employees and the capacity to employ up to 6,000 craftworkers, it said. The firm generates annual revenues exceeding $4 billion Canadian dollars ($2.8 billion) and has over 500 active projects per year across North America.
The move comes as cross-border tensions have flared between Canada and the U.S. over President Donald Trump’s on-again, off-again tariff threats.
It also transpired in a deal environment where broader merger and acquisition activity is picking up, according to New York City-based global management consulting firm McKinsey & Co. There have been 1,800 transactions since 2020, a 60% increase, with more than 80% of those agreements concentrated in Europe and North America.
Both Graham and XLI said the deal had a strategic scope to it that would help them be more than the sum of their parts.
“We are thrilled to join forces with Graham Construction to combine our organizational strengths to expand our reach and deliver greater value to our clients,” said Richard Walker, CEO of XLI, in the release. “This merger will allow us to harness the strength of both companies’ expertise, talent, and innovative approaches to project delivery.”
