Koontz Corporation wanted to strengthen its focus on multifamily business. Joeris General Contractors was looking to extend into more commercial construction markets. The ensuing deal between the two local companies could not have been more seamless.
The agreement, which was finalized this month, resulted in Joeris’ acquisition of Koontz Construction’s commercial division, a team that has a long resume of projects in the corporate office, automotive, senior living, condominium and medical construction industries.
“This will help strengthen our footprint in the private market,” Joeris CEO Gary Joeris said of the acquisition. “It will bring in more business, open new relationships … We get to bring on some great people with resumes outside of our normal business.”
While the construction arm of Koontz Corporation had been the most profitable source of revenue for the local company, the deal has opened the door for Koontz to build up its name, so to speak, in the Texas multifamily market.
Koontz Construction will wrap up work on the five commercial and five multifamily developments it has in its pipeline before transitioning its commercial business over to Joeris — all of which are expected to finish by this fall — but it is already moving full-speed ahead with its new direction.
The company announced last week that it will start work on a 313-unit upscale community located at the intersection of Sundance Parkway and FM 306 just a hop away from The Villas at Sundance property Koontz developed about four years ago.
The finalized agreement between the two local companies will keep the multifamily division of Koontz Construction under the Koontz corporate umbrella, but as Koontz Chief Financial Officer Troves Gilbert said, the deal will allow the company to refocus back on its roots as a development company.
Koontz President and CEO Bart Koontz echoed Gilbert’s sentiments by adding that the company will be narrowing in “on the areas of business we’ve traditionally done well in. We have been lucky to have been able to play in all of San Antonio’s food groups, but this is a market-driven decision.”
And that decision is one Joeris is planning to benefit from.
“This will give us more diversification in more markets,” the Joeris CEO said. “We were already looking for more people to hire, so this was good for us. It couldn’t have been easier.”
Source – http://www.bizjournals.com/sanantonio/print-edition/2016/05/20/koontz-joeris-growing-in-new-directions.html— Katie Burke – San Antonio Business Journal, May 20, 2016