DON SCOTT/ Fairfax NZ
MILESTONE: The family behind March Construction. From left, Guy, Buzz and Andy March.
French construction giant Vinci has bought just over half of well-known Canterbury family firm March Construction, founded by "Buzz" March and his brother Sam 41 years ago.
It's one of the first overt signs of growing international interest in the Christchurch rebuild.
March Construction's owners, Buzz March, now 70, and sons Guy, the managing director, and Andrew, announced the sale of 55 per cent of their company yesterday and are keeping the price paid by the Fortune 500 company confidential.
Vinci is also one of the 40 biggest companies on the French stock market. It has revenues of ? 60 billion (NZ$94b) and is about 12 times the size of Fletcher Building, New Zealand's largest listed company.
Guy March said it was a milestone for the 41-year-old company.
"We now have the biggest financial backing of any construction group in New Zealand."
March Construction will become part of the Soletanche Freyssinet group, within Vinci, which specialises in geotechnical and ground and structural engineering.
"The investment by Soletanche Freyssinet will give March Construction access to world-leading experience, equipment and technologies unrivalled in the New Zealand construction industry," March said.
Guy March will continue as managing director and senior managers of Soletanche will join the March board.
Soletanche's Australian arm is Menard Bachy. Its Oceania managing director, Paul McBarron, said trust and respect between the two companies had developed through previous joint ventures.
Soletanche's business model was to team up with local companies. It had more than 180 business units in more than 100 countries working in specialist parts of the construction sector.
March said Soletanche had the technology to repair land damaged by the earthquakes and render it capable again of carrying new buildings. Soletanche's area of expertise included improving soil conditions, foundations, piling, land remediation and stabilising slopes.
March first worked with Menard Bachy in 2004 on geotechnical work for the Sofitel Hotel in Queenstown. They are in a joint venture now rebuilding all the levies at the Bromley Sewage ponds to strengthen them against further liquefaction.
Soletanche wanted to develop a presence in the Auckland market as well.
"They are long-term investors. They haven't just come here to grab a slice of the earthquake work."
March said one of the challenges for a company like theirs, a middle-tier firm, was capital to expand.
"There is only so much you can borrow and only so much you want to borrow," he said.
March's turnover had doubled since the earthquakes to about $80 million and it employed about 80 staff now including some new recruits from Ireland, Scotland, Wales and England.
March had traditionally worked on wastewater systems in Christchurch.
The tie-up with Soletanche was "a step up" for March Construction which would keep its name. It would take the firm to a new level and open up opportunities for the company and staff to take part in more complex projects.
- ? Fairfax NZ News
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