28 April 2015
Property, residential, construction and services group Kier has announced that it has entered into a conditional agreement to buy French repairs and maintenance company Mouchel.
Kier has agreed to acquire Mouchel for a total consideration of £265 million in cash from the Mouchel sellers to be financed by a £340 million fully underwritten rights issue.
The acquisition is expected to deliver pre-tax cost synergies of about £10 million in the financial year ending 30 June 2016, according to statement from Kier.
The purchase creates an enlarged group with a combined order book of £9.3 billion (as at 31 March 2015), comprising Kier's order book of £6.5 billion and Mouchel's order book of £2.8 billion.
Haydn Mursell, chief executive 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."
Grant Rumbles, chief executive of Mouchel, said: "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."