UK construction company Kier has announced the acquisition of infrastructure consultant Mouchel, in a deal which will enhance the offering of the two firms to the water industry.
The cash acquisition will create a merged entity with a turnover of £3.6BN, and strong infrastructure design capabilities. Kier is funding the takeover through the issue of additional equity, which will require the approval of shareholders. The process is expected to take around five weeks and be completed in June.
The transaction will enhance the range of Facilities Management (FM) and Business Process Outsourcing (BPO) services that the enlarged group can offer to clients, including those in water and utilities. The combined company will be a sector leader in the growing UK highways management and maintenance market.
Since undergoing financial restructuring in 2012, Mouchel has shown a marked improvement in its fortunes, with profits of £27.7M for the year ended 30 September 2014.
Haydn Mursell, CEO of Kier, said: “Over the last three years, Mouchel has been transformed into a strong business with market leading positions. The combination of Kier and Mouchel, particularly in the provision of UK highways maintenance services, creates a leader in a growing marketplace. The acquisition is consistent with and accelerates the delivery of our Vision 2020 strategy and will provide compelling value to shareholders.”
On completion of the deal, Mouchel chief executive Grant Rumbles will stand down.
Grant Rumbles, Mouchel’s Chief Executive, added: “Kier and Mouchel are an excellent fit. The enlarged company will enable us to improve our offer to customers and to enhance the career opportunities of our employees.”
“This deal is testimony to the successful turnaround of Mouchel following its 2012 restructuring. Refocusing the business on its core strengths and targeting profitable growth has brought us to a position where our order book is now more than £2.8bn. For that I thank my excellent management team and all of our staff for their hard work and determination over the last few years.”
“I will remain in the business until the transaction completes. Although I will be sad to be going, I am pleased to be leaving the business in such great hands.”
The latest expansion for Kier follows on from its £221M acquisition of May Gurney in July 2013.
Source: WWT News
More info: http://tinyurl.com/m5vakca