UK-headquartered business services group Mouchel will be acquired by integrated property services group Kier for US$410.3mn, following Mouchel?s marked improvement in performance over the past three years
According to Mouchel, the agreement for the sale of the group was concluded with the payment of US$410.3mn in cash for the entire issued share capital of the business.
Following an improvement in Mouchel?s performance in the last three years, the company decided to go ahead with the transaction with Kier. Mouchel?s underlying operating profit has risen to US$42.9mn with a turnover of US$955.6mn in the financial year ending 30 September 2014. Revenues for the three months ending 31 December 2014 have increased by 38 per cent, compared to the same period in the previous year, said the company in a statement.
Further on, board members of Mouchel believe that the two companies will provide a larger set of opportunities for staff and clients, and the combined company is expected to be a leader in enhancing the UK?s highways management and maintenance market.
Mouchel chief executive Grant Rumbles 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. Refocusing the business on its core strengths and targeting profitable growth has brought us to a position where our order book is now more than US$4.3bn. For that, I thank my excellent management team and all of our staff for their hard work and determination over the last few years.?
Once the transaction is through, Rumbles will step down and Kier CEO Haydn Mursell will assume the title of CEO of the expanded group, confirmed Mouchel.
In addition to expanding the UK?s highways and maintenance market, the transaction is expected to enhance facilities management (FM) and business process outsourcing (BPO) services that the enlarged group has to offer to local authority clients, and especially in the water and regulated industries market.