STO Building Group's family-of-companies rollup climbed ENR's list from No. 14 to No. 6

In November 2021, New York-based STO Building Group added Fairfield, N.J. contractor RC Andersen Construction to its portfolio — its third acquisition of a major construction firm in two years, after Layton Construction merged in in 2019 and Seattle's Abbott Construction joined in 2020. STO, which now includes almost a dozen separate companies, was drawn by surging demand in industrial and distribution real estate, where RC Andersen specialises alongside cold storage work.

The distinctive move is what STO does not do: acquired firms keep their names, logos and cultural identity. RC Andersen's current leaders became shareholders in the organisation while continuing as the firm's senior leadership team. Founder and president Bob Andersen called the merger the next step in the firm's evolution — 'maintain our marketplace identity, name recognition and legacy, while giving our employees the opportunity to invest in the company's employee ownership program'.

The model has results attached: STO's 'family of companies' approach propelled it from No. 14 to No. 6 on Engineering News-Record's Top 400 list in two years, on 2020 revenue of $8 billion. CEO Robert Mullen said the additions give STO a national industrial footprint — RC Andersen in the East, Layton in the West and Central US — that 'clearly distinguishes us as the market leader'. Financial terms of the RC Andersen deal were not released.

Rose from No. 14 to No. 6 on ENR's Top 400 contractor list in two years, with 2020 revenue of $8 billion.

The rollup model is documented with outcomes, not just deal flow: a six-place ENR ranking climb and $8 billion of revenue.

Retention of identity and equity is the strategic twist — the opposite of the rebrand-and-integrate rollup, aimed at keeping the founders who built the client relationships.

The timing logic is explicit: STO positioned its national footprint for a forecast industrial boom rather than buying opportunistically.

A rollup that keeps the acquired brand, its leaders and their equity buys loyalty along with capability — and climbs the rankings without dissolving what it bought.

STO positioned itself for the industrial and distribution build-out, with Cushman & Wakefield forecasting 461.39 million square feet of North American industrial absorption from 2021 to 2022 and record asking rents. RC Andersen continues operating under its own name within the group.