Shimizu Corporation has acquired a 51% stake in New York-based Cross Management, marking its first construction company purchase in the United States as the Japanese contractor works to reduce its dependence on Japanese clients abroad.
The deal, completed in late January through Shimizu’s American unit, is estimated to be worth billions of yen. With the current exchange rate of ¥149 to the dollar, even just ¥1 billion would equal approximately $6.7 million.
Cross Management, which reported $128 million in sales for 2023, specializes in interior and exterior construction for office buildings, restaurants, and retail stores primarily in New York state, with a concentration in Manhattan. The company serves major financial institutions and real estate developers.
Previously, the two firms collaborated on renovating a building for Japanese confectioner Minamoto Kitchoan on Manhattan’s Fifth Avenue. Now, Shimizu plans to leverage this acquisition to diversify its client base.
Hitoshi Fujita, director of Shimizu’s global business headquarters, indicated the company aims to increase sales and profit from non-Japanese companies to more than 50% of its U.S. business within the next few years. The company views Manhattan projects as a springboard for expanding relationships with American clients nationwide.
This acquisition aligns with Shimizu’s broader international strategy to boost overseas work from 5% of consolidated gross profit to 25% by fiscal 2030. North America represents the company’s second-largest overseas market after Southeast Asia.
Fujita suggested more acquisitions may follow, noting the company wants to strengthen its “real estate and construction value chain in the U.S.”
