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Construction giant buys out Naples-based Kraft
Brian Tietz / Courtesy Gravina, Smith & Matte
Manhattan Construction Company has acquired a controlling interest in Naples-based Kraft Construction Co. Inc.
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NAPLES — Two are one.
A national construction company — with ties to a former U.S. Ambassador to the Vatican — has acquired a controlling interest in Naples-based Kraft Construction Co. Inc.
The combination will create one of the largest privately held general construction companies in Florida, with annual revenues of about $1.5 billion.
The deal, in the works for about five months, was made public Monday afternoon.
The value of the purchase wasn’t disclosed.
The buyout comes as Kraft celebrates its 40th anniversary in Naples. Founded by George F. Kraft in 1968, the commercial construction company has about 300 employees. Its revenues this year are estimated at $400 million.
Over the years, Kraft has rejected offers for partnerships and mergers. But Oklahoma-based Manhattan, which already has a Tampa office, was seen as the right fit, said Fred Pezeshkan, Kraft’s chairman and CEO.
“As a leader of Kraft it’s my job to look forward to the future and to see where the company is going in the next five to 10 years, and what is our growth going to be. And we are zeroing in on the Tampa area and the north as our next move,” he said.
Manhattan Construction Group is a subsidiary of Rooney Holdings Inc., an investment company with offices in Naples and Tulsa, Okla.
Francis Rooney, a part-time Naples resident and top Republican fundraiser, is the chairman of Rooney Holdings. He returned to the U.S. in February after serving as the ambassador to the Holy See from 2005 to 2008. Not longer after that, talks began about a partnership with Kraft, he said.
“I’ve been in construction all my life,” said Rooney, whose great grandfather started Manhattan in 1896. “I had such great admiration for Fred and Kraft.”
Having lived in Naples, Rooney has watched Kraft grow over the years.
Both companies share the same philosophies of giving back to the community, and treating their employees and clients well.
Most of Kraft’s business comes from repeat customers. A company trademark is the successful completion of each project — on time, within budget and with the highest quality standards.
The Kraft name will live on in Florida. Pezeshkan will remain the company’s chairman and CEO, and a shareholder in the company. No other staff changes are planned, at least not immediately.
Manhattan’s Tampa office will operate under the Kraft name.
“It will allow us to grow,” Pezeshkan said. “At a time that other companies are shrinking, with this partnership Kraft Construction is going to be able to grow in Tampa _ to immediately have an office in Tampa ...”
Like other companies in Southwest Florida, Kraft has seen its opportunities shrink with the local economy.
First, residential construction reached a crawl with a housing slump. Then commercial construction slowed.
“There is only so much going on here,” said Brenda Talbert, executive director of the Collier Building Industry Association. “In a changing market you have to be nimble and open to new ideas and new markets.”
Kraft has been fortunate because it has diversified, Pezeshkan said. Six or seven years ago, most of the company’s business was building high-rise condominiums, the market that has taken the biggest hit in the real estate downturn.
Now Kraft is building a variety of projects from schools and hospitals to government buildings.
Kraft has grown into one of the largest privately held construction companies in Florida and one of the 100 largest contractors in the U.S.
Some of its more high-profile projects include Ave Maria University, Florida Gulf Coast University, Naples Community Hospital, the Ortiz Jail in Fort Myers, the North Naples Regional Park and the High Point Place condominium in Fort Myers.
Manhattan Construction Group’s subsidiaries include Manhattan Construction Co., M.J. Lee Construction Co., and recently acquired Southern Pavers Inc. and Cantera Concrete Co.
Manhattan has built such notable projects as the U.S. Capitol Visitor’s Center, the Bush Presidential Library and the Dallas Cowboys’ new NFL stadium. The company has offices in Houston, Dallas, Oklahoma City, Mexico City, Atlanta, and Washington, D.C., as well as Tampa.
With Manhattan’s experience, Kraft will be able to tackle projects that it hasn’t done before — maybe even a stadium.
“It’s a perfect fit to take advantage of the skills and strengths of both companies here in Southwest Florida,” Rooney said.
Kraft isn’t the first local company to explore new opportunities for growth in this slow market.
After the market turned in Florida, Todd Gates got out a map and started looking for development opportunities elsewhere. Last year, his company, GATES, headquartered in North Naples, signed a partnership agreement with Panama-based COCIGE, one of the largest construction companies in Central America with 3,000 employees, so it could continue its growth.
Gates applauded the new partnership between Kraft and Manhattan, saying he respected both companies and their leadership.
“We look forward to continued competition as we go forward,” Gates said. “I wish them nothing but success.”
Comments
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Isn't this interesting.
I guess you do what you have to do to keep the doors open in this economy.
#1 Posted by Optipess on August 25, 2008 at 1:17 p.m. (Suggest removal)
Did the deal include our local politicians? I guess it did. Some of them can be bought pretty cheap.
#2 Posted by fearisfailure on August 25, 2008 at 1:47 p.m. (Suggest removal)
If they run into any problems, the defrocked Under Sheriff who is experienced at violating federal laws will be happy to help out after all the money Kraft raised for him.
#3 Posted by irconcerned on August 25, 2008 at 1:54 p.m. (Suggest removal)
Lets see..I wonder if there is a divest procedure so it can be dumped back within 5 years if the numbers don't jive..the other "big" firm (now little) probably wishes some entity would bail them out with some liquidity...did the Jehovahs Witnesses build his house and he went to Kraft?..the JWs arent drinking at the right place.
#4 Posted by Trexler on August 25, 2008 at 2:05 p.m. (Suggest removal)
Trexler, what...?
#5 Posted by trehuger on August 25, 2008 at 3:01 p.m. (Suggest removal)
......and lllllllllllllet the layoffs being!
#6 Posted by GeorgeGlass on August 25, 2008 at 3:04 p.m. (Suggest removal)
Trexler hit the kool aid a little early today. Unfortunately this smells of pink slips.
#7 Posted by trehuger on August 25, 2008 at 3:09 p.m. (Suggest removal)
smells like opening doors for bigger and better things
#8 Posted by seacoast on August 25, 2008 at 3:44 p.m. (Suggest removal)
Sorry to hear the company is short of cash. Last time I saw Fred he was looking fine.
#9 Posted by Gumshoe on August 25, 2008 at 3:52 p.m. (Suggest removal)
Interesting timing after the retirement just a year ago of long-time Kraft CEO Bob Carsello.
Sad that all the large local companies are selling out or failing. Watch for local bank sales next as economic conditions improve.
#10 Posted by FloridaBoy on August 25, 2008 at 5:59 p.m. (Suggest removal)
Well I guess the ones who should really be watching there backs are the under the table guys getting kickbacks from subs....!!!!!!
#11 Posted by vanrcrd6 on August 25, 2008 at 6:34 p.m. (Suggest removal)
is Rooney a supporter of halas?
just want to know what I will be up against
#12 Posted by TheLissack on August 25, 2008 at 7:20 p.m. (Suggest removal)
Kraft does not hire illegals!
#13 Posted by youreallcrazy on August 25, 2008 at 7:39 p.m. (Suggest removal)
Back for more laughs..for you poor people out there, my yacht captain goes by the place weekly on Admiralty Parade and keeps me informed of the JWs (rhymes with blueberry) building the house for the Vat. Rep, got that like Hoffman did for WCI,..Republican giving money and get Amb. to Vat. Recall the city council kissing backside of Army Sec. for house at Central & beach, pd. $1 mil plus, pumped it up another 1.5 mil, city council bent over backwards giving all kinds of specialties, sold for about $8 mil...and Army Sec. kissed off Naples...I just love small town politics, as opposed to the big thieves at the Wall St. banks..yes, fire sale & future probably going to be "small" if exists...
#14 Posted by Trexler on August 25, 2008 at 8:36 p.m. (Suggest removal)
It's no surprise that the Friends of Bush are still running their scams in Naples, this being the last place on earth where the locals haven't yet spit up the kool aid..
#15 Posted by greathornedlizard on August 25, 2008 at 9:25 p.m. (Suggest removal)
Trexler:
Don't beat around the bush. Elaborate.
#16 Posted by elnuestros on August 25, 2008 at 10:33 p.m. (Suggest removal)
It appears that this deal was in the works when the City was negotiating for Kraft to build its 9-million parking garage -- you know, the one near the Coopers Hawks nest. One wonders whether anybody on the City Council knew this "merger" was in the works. One also wonders why the City allows Pezeshkan's son to serve on its downtown advisory board. Isn't this a bit too close for comfort?
#17 Posted by unygfw on August 26, 2008 at 5:39 a.m. (Suggest removal)
Do the illegals go with the buyout?
#18 Posted by Jadip811 on August 26, 2008 at 5:55 a.m. (Suggest removal)
Another company that exploits illegal cheap labor makes good. MIA Brat, they may not hire them directly for high profile jobs, but I bet if you look among the subs you will find illegals. That's how it's done.
#19 Posted by Joseygirl on August 26, 2008 at 6:51 a.m. (Suggest removal)
Naples businesses are terrible for hiring illegals
to name a few
bone fish grill
italian tile and marble
bejing chinese
Kraft
#20 Posted by grouper25 on August 26, 2008 at 8:18 a.m. (Suggest removal)
Hmmm, another ex undersheriff supporter. Check the supervisor of elections Web site.
On July 16, a Francis Rooney, 1400 Gulf Shore Drive, Naples, board of directors "bank of" donated $500 to the defrocked undersheriff.....
#21 Posted by mothernature on August 26, 2008 at 8:49 a.m. (Suggest removal)
http://www.rooneyholdings.com/corpora...
#22 Posted by mothernature on August 26, 2008 at 9:04 a.m. (Suggest removal)
This to me is scary about mr. Rooney....I guess offshore drilling isn't a concern for a certain sheriff's candidate.
http://www.hpinc.com/pressreleases.html
here's the main Web site.
http://www.hpinc.com/about.htm
#23 Posted by mothernature on August 26, 2008 at 9:12 a.m. (Suggest removal)
trexler, you certainly have my attention. Any more you can share?
#24 Posted by BlueTonguedVole on August 26, 2008 at 11:26 a.m. (Suggest removal)
Mothernature, I have found that if you have a concern about a publicly held company that obtaining a few shares of their stock helps keep you up to speed with what they are doing even better than reading info online. Now preferred stock is the way to go, but may be limited. Still when holding only a couple of shares, there is no influence, but at least you can keep a closer watch on who you are concerned about.
Get the stock in public name and you can still participate in proxy votes.
I do invest a little, but not like trexler and some of the other living large folks in the area. Started young with a single share of DuPont for my 16th birthday.
#25 Posted by BlueTonguedVole on August 26, 2008 at 12:06 p.m. (Suggest removal)
Mothernature give it a break and give it up on Rambosk. He will win today and you will have to move on to another lost cause only you care about.
Rooney is a good guy, that bought a company that use to be good before this Fred guy ruined it, and after Rooney fires most of the dead weight execs, and tells this Fred guy to go home, will make it a good company again. Like it was when Carsello ran the show. I was a sub for that man and he always treated us fairly. Jobs for local people and subs. That's what it is all about folks.
#26 Posted by Builderboy1985 on August 26, 2008 at 12:07 p.m. (Suggest removal)
Shame on you Builderboy, if you really knew Mr. Pezeshkan you wouldn't speak of him so unkindly. He is probably one of the most ethical, giving, well intended gentlemen of this town. He's definately got his head on straight with great business saavy. You should be so successful..possibly Fred got your number early in the game. Sour grapes?
#27 Posted by normajean on August 26, 2008 at 1 p.m. (Suggest removal)
tell us of your experience with Mr. P normajean...
#28 Posted by trehuger on August 26, 2008 at 3 p.m. (Suggest removal)
Norma sweetie: I bet you think there really is an Alice in Wonderland too. Live the dream doll, because there are dozens of companies that have experienced the non-paying, cut your price, who cares attitude of your man of the year. You have no idea of the business side of his life, just the social, and I will admit he can be as charming as wealthy gentlemen usually are when out on the town.
#29 Posted by Builderboy1985 on August 26, 2008 at 3:13 p.m. (Suggest removal)
How can this be a sell out, a company of this size will starve here, there's nothing left, they have, or are building it all already.
#30 Posted by trehuger on August 26, 2008 at 4:08 p.m. (Suggest removal)
Ok Builderboy stay tuned here...no my life hasn't been to much of a la-la land. I assumed the role of taking over a large construction company and sat of the Board as a trustee for the IBEW. I handled multi-million dollar contracts, handled union mentality, and all while being a women in her thirties. I was a customer of Kraft's due to Mr. Pezeshkan's fine ethics and quality work, which goes way beyond the doll that you think frolics in a pure social environment. My pressures went well beyond pounding a nail and driving an F150. So, when you think to be so presumptious of my credentials, think twice. And, while your at it..rethink your process about Mr. Pezeshkan because you've obviously missed the mark.
#31 Posted by normajean on August 26, 2008 at 4:14 p.m. (Suggest removal)
OH MY GOD...........she used the "U" word!!!!!!
#32 Posted by Optipess on August 26, 2008 at 4:28 p.m. (Suggest removal)
Maybe all of you that are speculating about who Mr. Pezeshkan is or isn't, or what Kraft does or doesn't should talk to some of their long time employees. If Kraft is so bad then why are there so many long time employees there?
#33 Posted by youreallcrazy on August 26, 2008 at 4:48 p.m. (Suggest removal)
NormaJean it's good to know you are one of the people that had a positive experience on the owner's rep side of the equation. That "was" a Kraft trade mark. I hate to burst your bubble but the reason for the satisfaction was due to the great construction (Operations), not the office (marketing) side that you witnessed. Carsello and his guys were the builders, not FP or his little boys in the office.
And Miabrat..there are a few dozen of those long time employees that left the place because of what it's become. There are only a dozenof long term people remaining of the 200 still there, and if the economy wasn't so bad, they would all be long gone.
#34 Posted by AfterKraft on August 26, 2008 at 7:36 p.m. (Suggest removal)
Does this mean that Kraft Road will change names?
#35 Posted by Pigsaw on August 26, 2008 at 9:56 p.m. (Suggest removal)
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