Soukup Construction acquires Asphalt Surfacing

Soukup Construction Inc., a contractor based in Sioux Falls, has completed the acquisition of Asphalt Surfacing Co. (ASCO), consolidating its position in the regional construction market. Both companies, established in the early 1960s, have long histories of collaboration, often working together on various projects. The acquisition, for which financial terms were not disclosed, is expected to enhance operational efficiencies by combining complementary services.

Soukup Construction, originally founded by Carl and Marietta Soukup, started with a single piece of heavy machinery and has since grown into a midsize firm with approximately 150 employees. The company specialises in earthwork, utilities, and site preparation. Its newly acquired subsidiary, ASCO, brings expertise in civil, commercial, and residential asphalt paving and adds another 25 employees, increasing the combined workforce to 175.

The decision to acquire ASCO was described as a "natural one" by Matt Millage, vice president of Soukup Construction, who highlighted the complementary services as a primary rationale for the merger. This move aims to create an integrated service offering that spans from initial site preparation to final paving. According to Nate Gonseth, Soukup’s CFO, the acquisition will provide greater opportunities for cost efficiency and improved project schedule control, benefiting from more streamlined coordination.

The construction sector in Sioux Falls, where both companies are based, continues to see robust activity, partly driven by infrastructure projects and regional growth. By acquiring a company with a similar ethos, Soukup Construction reinforces its commitment to local economic contributions, which Gonseth remarked as a core company belief.

Looking ahead, the integration process will be pivotal to achieving promised efficiencies and streamlined operations. While the current focus remains on aligning operations, future prospects might include expansion into more diversified service offerings or geographic areas. As both firms have shared a long-standing commitment to client and employee satisfaction, maintaining these standards will likely be critical to the success of the combined entity.