The Conveyor > The Official Publication of the NJCAA

the conveyor
presidents message
johnston enterprises
ass. john wisniewski
40th concrete awards
2004 forum

njcaa home
who we are
contact us
promotion council
legislative & reg
member services
aggregate news

Johnston Enterprises
by Michael Fickes

In a bid to counter the effects of consolidation in the concrete and aggregate business, the Agate Construction Company of Ocean View, N.J. has carried out a consolidation of its own. Owned by James Johnston, Jr., Agate purchased three companies in June of 1999: Penn Jersey Building Materials, Inc., a ready-mix producer; Tuckahoe Sand & Gravel, Inc., a sand and gravel provider; and Dial Block Company, Inc., a concrete-block manufacturer.
   Agate, a heavy construction company, has built a reputation for quality construction in the field of marine and public highway work.
   The combined companies are called Johnston Enterprises, according to Gerard Brangenberg, who serves as general manager for the three construction materials operations. "Together, these companies form a vertically integrated construction and material supply organization," Brangenberg says. "The combination enables us to provide materials for our own construction projects and better serve our southern New Jersey markets through economies of scale."
   Johnston purchased the companies from long-time friend Albino Vandrasco, who had decided to retire. Everingham & Kerr, Inc., a middle market investment-banking firm based in Haddon Heights, brokered the transaction. Financial details have not been disclosed.
   Since the acquisition, Johnston Enterprises has worked to expand locations and upgrade transportation facilities. "We've added two ready-mix plants and begun to replenish the fleet with front discharge trucks," Brangenberg says.
   One of the new ready-mix plants has a state-of-the-art central mix capability, continues Brangenberg.
   Since the acquisition, Johnston has also opened a recycling operation at the company's location in Egg Harbor Township, home to one of the ready-mix plants. All told, the enterprise now includes a construction company, four ready mix plants, a concrete block plant, a sand and gravel mine, the recycling plant and between 75 and 100 union employees.
   Since the consolidation, the combined companies have earned a number of signature projects. Penn Jersey, for example, supplied 70,000 cu. yds. of concrete for the 43-story primary tower of the new Borgata Hotel Casino & Spa in Atlantic City. The $1.1 billion casino features 2,002 rooms wired for Internet access, 11 restaurants, a spa and 135,000 sq. ft. of gambling space that includes 3,650 slot machines.
   Penn Jersey provided post tension concrete of varying strengths poured year-round. Overall, the project took three years to complete. Working for the project's concrete contractor, Callavino Concrete, Penn Jersey helped the job finish ahead of schedule.
   Aiming to inject Las Vegas excitement into the Atlantic City gaming milieu, the extravagant Borgata has led a number of the city's other casinos to undertake $600 million in upgrades. Trop World, for example, is currently expanding its west tower. Penn Jersey will eventually supply more than 60,000 cu. yds. of concrete for the project, which is managed by Fabi Construction Company, Inc.
   Brangenberg declines to provide financial details, but says the Borgata and Trop World are both multi-million dollar projects.
   Johnston Enterprises also gained a measure of versatility from its consolidation. For example, the company earned a spot on the contractor roster for the Southern New Jersey Light Rail Transit System. Currently under construction, the new system will link Camden and Trenton with a network of 20 stations spread along a 34-mile route connecting 17 towns in Camden, Burlington, and Mercer Counties.
   The $453 million construction portion of the project includes upgrading our repairing 50 grade crossings and 17 bridges, track work, signalization, station construction and a rail yard and shop.
   Under various contracts with Bechtel, the general contractor, Johnston Enterprises, provided concrete, crushed stone, dense-grade aggregate and other materials, while Agate completed bridge construction work - notably the 400-foot long Crosswicks Bridge.
   Brangenberg also credits the consolidation with a number of smaller jobs carried out by the Johnston Enterprises. "Agate Construction received the job of building the liner for the Cape May Municipal Utility Authority landfill," he says. "In part, we won that job because of our vertical integration."
   The consolidated company also plays a role in helping set industry priorities. James Johnston has held a seat on the board of directors for the Utility and Transportation Contractors Association for the past five years. Johnston currently serves as senior vice president of that organization.
   In addition, Brangenberg sits on the board of the New Jersey Concrete and Aggregate Association. "We've become a formidable organization within the construction industry in southern New Jersey," he says.