Kier Group, the integrated property, residential, construction and services group, has completed the acquisition of the entire issued share capital of MRBL Limited (Mouchel).
In early May we reported that Mouchel reached an agreement for the sale of its entire issued share capital to Kier. Kier will pay £265 million (US$409.5 million), in cash, for the business.
Mouchel is an international infrastructure and business services group. It provides advisory, design, project delivery and managed services to the highways and transportation, local government, property, emergency services, health, education and utilities markets in the United Kingdom, the Middle East and Australia. It is the leading provider of repair and maintenance services to the UK strategic road network.
The transaction follows a transformation in Mouchel's performance during the last three years which has seen the group grow underlying operating profit to £27.7 million on turnover of £617 million in the financial year ended 30 September 2014. Revenues for the three months ended 31 December 2014 have increased by 38 % compared to the same period in the previous year. Since the end of the period, Mouchel has continued to experience similar growth and has maintained margins at historic levels.
The combined company will increase its weight in the growing UK highways management and maintenance market, servicing Highways England, Transport for London and local authorities. The transaction will also enhance the range of Facilities Management (FM) and Business Process Outsourcing (BPO) services that the enlarged group can offer to local authority clients, as well as those in the Water and Regulated industries market.Kier's chief executive, Haydn Mursell, commented:
"The successful acquisition of Mouchel now positions Kier as a sector leader in the growing UK highways maintenance and management market. In particular, the acquisition enables the Group to capitalise on £17 billion of investment in the strategic road network to be delivered through Highways England over the next five years, whilst also accelerating the delivery of Kier's "Vision 2020" strategy."