Kier Confirms Mouchel Takeover
Published on by Water Network Research, Official research team of The Water Network in Business
Construction firm Kier has announced the £265M acquisition of infrastructure consultant Mouchel, in a deal which will enhance the offering of the two firms to the water industry
The cash acquisition, which follows months of talks, 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."
Source: WWT
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