Gkkworks has boosted its architectural focus with the acquisition of Glendale-based Leidenfrost/Horowitz & Associates Inc.
Newport Beach-based gkkworks, which provides architectural design, construction management and development services, bought Leidenfrost for an undisclosed amount. Leidenfrost operates mainly in the Southwest U.S.
Gkkworks posted revenue of about $40 million for the year ended June 30. Leidenfrost’s sales were about $12 million, according to Praful Kulkarni, chief executive and founder of gkkworks.
The company is unlike traditional architectural firms in that it also provides construction management services. This involves overseeing subcontractors and making sure a construction job gets done on time and under budget.
The company also offers program management help for developers that don’t have enough workers to oversee a project from start to finish. In rare cases, gkkworks also will provide actual construction work on a project.
With Leidenfrost, gkkworks will draw about 60% to 65% of its revenue from architectural work, up from 40% to 45% before the acquisition, Kulkarni said.
The balance will continue to be in project and construction management.
Gkkworks has seen sales grow by 25% to 30% annually in recent years, Kulkarni said. He expects similar results for the combined company in the next year.
Together, gkkworks and Leidenfrost have 240 workers in 10 offices. About 80 employees came from Leidenfrost.
Leidenfrost gives gkkworks its first taste of the commercial retail market, including the gambling sector. Leidenfrost was the architect for the Paris Resort and Casino in Las Vegas.
Leidenfrost also is active in the education sector, an early target for gkkworks, which was founded in 1991.
Kulkarni said when he launched gkkworks, he focused on more recession-proof markets, such as education and healthcare, to get the firm on a solid track.
“The beauty of this is that both of the firms are very strong,” Kulkarni said. “It gave us a lot of diversity. It also gave them a substantial partner.”
Leidenfrost is set to remain in Glendale.
Gkkworks is in the process of moving to a 20,000-square-foot headquarters in Irvine. The site will hold up to 85 people. Gkkworks will move roughly 65 employees from New-port Beach.
For the past three years, gkkworks has been listed as one of Engineering News Record’s Top 100 construction and program management firms. It was No. 21 on the Business Journal’s ranking of architectural firms last fall.
Gkkworks has worked on some notable projects.
Kulkarni said the firm is designing the headquarters for a large “technology client” that overlooks Ground Zero in New York.
The firm has handled program management for the Oakland Unified School district’s $1 billion in construction projects that are under way.
It also did construction design for the $240 million Los Angeles Police Department headquarters.
In OC, gkkworks handled architectural work for the $90 million Laguna Niguel Courthouse. The firm also has designed condominium towers in Dubai and office buildings in China.
Gkkworks has an office in New York and several others in the Western part of the U.S.
