San Antonio-based Zachry Construction has taken a major step into the growing U.S. water infrastructure market by acquiring Crescent Constructors, a Plano, Texas-based firm specializing in municipal and industrial water projects. The deal, announced Tuesday, underscores Zachry’s focus on expanding in critical infrastructure sectors where demand continues to accelerate.
Under the terms of the agreement, Crescent will retain its name and continue operations in Plano, with its 100 employees joining the Zachry network. While financial details of the deal were not disclosed, both companies say the partnership will sharpen their ability to compete in a sector increasingly viewed as essential to public health, environmental resilience, and economic growth.
Zachry highlighted the deal as a key milestone in its long-term growth strategy. Travis Mross, executive vice president of Zachry, said in an email:
“Looking forward, transportation and water infrastructure represent significant opportunities for Zachry Construction and Crescent Constructors to expand our impact, address critical societal needs, and deliver long-term value for our clients.”
The move comes at a time when U.S. water infrastructure is under heavy scrutiny. The American Society of Civil Engineers (ASCE) recently issued warnings about aging systems and the mounting threat of “forever chemicals” such as PFAS contaminating supplies. With climate change fueling droughts and extreme weather, demand for new treatment plants, distribution systems, and dam upgrades has only intensified.
Large infrastructure contractors have increasingly turned to the water sector as a source of stable, long-term projects. For Zachry, the acquisition of Crescent aligns with its expertise in large-scale, complex builds while opening the door to deeper specialization in municipal and industrial water systems.
The deal also reflects a broader wave of mergers and acquisitions in construction. A McKinsey report found that M&A activity has surged globally since the COVID-19 pandemic, with average annual transactions increasing by about 60% between 2020 and 2024 compared with the previous six years.
Still, the current economic climate has complicated activity. Industry leaders like Alexandre L’Heureux, CEO of Montreal-based WSP, have warned that uncertainty and weak visibility are major challenges for future M&A. Yet firms with strong balance sheets, like Zachry, continue to pursue strategic growth opportunities.
Recent examples include Graham Construction’s merger with California-based XL Industries, which expanded the Canadian builder’s U.S. presence earlier this year. Zachry’s deal with Crescent reflects a similar approach—securing niche expertise in a sector poised for growth.
For Crescent Constructors, the partnership brings resources, reach, and stability. Mike Daigre, founder of Crescent Constructors, said in the release:
“With the strength of Zachry’s national platform behind us, we are excited to grow our capabilities and continue delivering essential infrastructure.”
The acquisition positions Zachry and Crescent to play a larger role in upgrading and safeguarding U.S. water systems while also tapping into a market projected to expand rapidly in the coming decade.
Originally reported by Matthew Thibault in Construction Dive.
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