Kier, the FTSE 250 property, residential, construction and services group, has announced that it has entered a conditional agreement to buy French repairs and maintenance business Mouchel.
Mouchel 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.
Kier has agreed to acquire Mouchel for £265 million in cash, to be financed by a £340 million fully underwritten rights issue.
Mouchel reported group revenue (including share of JVs) of £616.6 million and underlying operating profit of £27.7 million for the year ended 30 September 2014. Revenues for the three months ended 31 December 2014 increased by 38 per cent. compared to the same period in the previous year. The Acquisition is anticipated to deliver pre-tax cost synergies of approximately £10 million in the financial year ending 30 June 2017, with integration costs of the Acquisition expected to be approximately £17 million.
The Acquisition creates an Enlarged Group with a pro forma 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. The Acquisition is consistent with and accelerates the delivery of our Vision 2020 strategy and will provide compelling value to shareholders.”
UK, Bedfordshire
Fusion Corporate Partners 
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