13 October 2016 | Herpreet Kaur Grewal
Construction and support services firm Kier Group plc has completed its disposal of Mouchel Consulting to WSP Global Inc. for £75 million.
Mouchel Consulting, acquired in June 2015 as part of Kier's acquisition of Mouchel, provides engineering, environmental and asset management consultancy services, principally to infrastructure markets.
On 4 July, Kier announced that it was undertaking an evaluation of the strategic options for the Mouchel Consulting business including a possible disposal.
For the financial year ended 30 June 2016, Mouchel Consulting reported revenue of £125 million, generating an operating profit contribution of £8 million and a profit before tax of £5 million. The gross assets of the company, the subject of the disposal, were £29 million at 30 June 2016.
The sale is expected to result in an immediate profit of about £40 million, subject to post-completion adjustments. Kier will retain the net disposal proceeds for future investment and to reduce debt.