Soukup Construction acquires Asphalt Surfacing Co. in Sioux Falls

What's the deal? Soukup Construction Inc., a Sioux Falls-based earthwork and utility services firm, has acquired fellow Sioux Falls company Asphalt Surfacing Co. (ASCO). The deal, announced May 1, combines two family-owned businesses that have worked alongside each other for decades — often as subcontractors to one another. The combined organisation now has 175 employees.

Why now? The two companies' services are "complementary," said Soukup vice president Matt Millage, calling the acquisition "a natural one." Soukup specialises in site preparation, earthwork, and utilities, while ASCO focuses on civil, commercial, and residential asphalt paving. Together, they can offer a more streamlined experience from site prep through final paving — with better cost efficiency and schedule control.

Soukup was founded in 1963 in Scotland, South Dakota, by Carl and Marietta Soukup with little more than a bulldozer and a pickup truck. It grew to about 150 employees serving eastern South Dakota. ASCO has been operating in Sioux Falls since 1960.

The signal: This is a classic example of vertical integration in regional construction — two firms that already collaborated regularly formalising their relationship to reduce friction and win more work. For clients, it means a single point of contact across a wider scope. For the companies, it means capturing more value from each project. Expect more consolidation among complementary trades as construction firms look to simplify supply chains and compete for larger contracts.

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