PCL Construction has acquired Orlando-based Nassal Cos. The company is known for fabricating theme park settings and was a leader in the construction and general contracting industry.
The terms of the agreement, announced on May 22, were not disclosed.
Nassal Cos. has worked on several local attractions, including Legoland Florida, Legoland Orlando, SeaWorld Orlando Antarctica: Empire of the Penguin and Universal Orlando Resort’s Wizarding World of Harry Potter. Nassal Cos. currently is involved with Universal's $1 Billion Epic Universe theme park.
PCL is a group of Canadian companies with an American headquarters in Denver. It's one of the biggest national construction firms in Central Florida, with over $240 million of local operating revenue, and 156 employees in metro Orlando. PCL will be the general contractor of three projects in downtown Orlando's $1.5billion Creative Village mixed-use development. It is also involved with New York's Deven Group plans for a luxury hotel.
This acquisition is important because it may signal future investment in Nassal's business.
Although executives from the two companies weren't immediately available to comment on the news, the release that announced the deal stated that executives are projecting a market growth of nearly 10% for clients in the entertainment and hospitality industries.
In a prepared press release, William Nassal said, "By joining the companies, we are creating a superpower for our clients, especially in the creation of themed and specialty environments and experiences around the world."
Deron Brown (PCL's U.S. president and chief operational officer) noted that the two companies had a long-standing business relationship dating back over 20 years and stated that the cultures of the two firms are "well aligned."
PCL only considers acquisitions if they are strategic and aligned with our company's goals, and if it is beneficial to shareholders.
Nassal Cos., under its existing leadership, will continue with its current business plans. According to a press release, the company's brand, focus area and positioning on the market will remain unchanged.
The deal follows previous news that Nassal’s 5.6-acre site industrial at 415 W. Kaley St. was under contract for sale to a group headed by Orlando developer Craig Ustler, who plans to build a mixed-use development.
Ustler, Orlando Business Journal reported that the acquisition will not affect the existing deal for the Orlando property. He previously stated that the agreement had been extended until the third quarter of this year. The sale-leaseback of the Orlando property will be used to accelerate the development of the 856 apartment and retail project - likely in 2026-2027.
The February report stated that "While economists and analysts are predicting a mild economic recession in 2023 the company balance sheets remain relatively strong when compared with previous recessionary periods and this could drive corporate acquisitions despite a downturn."