In the UK,
The deal worth just more than €364 million (US$405 million) strengthens Kier's position in the British highways maintenance and management sector. A €467 million rights issue was used to finance the deal.
With the purchase, originally announced in April, Kier becomes the biggest player in the domestic market, holding an order book worth around €12.8 billion.
Kier chief executive Haydn Mursell said the deal would “accelerate” the company’s growth plans in the roads sector and enable the enlarged business to better pursue around €23.3 billion worth of road repairs to be tendered by Highways England in the next five years.
British media reported that both companies have, over the negotiation phase, there would be “very few” job losses and cuts in would be in the back office to duplicate corporate functions. Together the two companies control, around a third of roads.
The deal is the culmination of a remarkable turnaround in Mouchel’s fortunes over the past four years.
Completion of the deal is the final step in a chequered past several years for Mouchel that had to delist from the London stock exchange. Financial problems had dogged the company but it bounced back, posting a pre-tax profit of €846 million revenue in the year to September 2014.
Apart from maintaining roads, Mouchel provides local education and civic infrastructure, water and energy.
Mouchel formed EnterpriseMouchel, later to be EM Highway Services, as a joint venture with Enterprise and Accord in 2005. According the Mouchel, the business has since won six
In 2012, EM secured a place on an eight-year as part of the London Highways Alliance Contract framework delivering services across the south of London.
Mouchel acquired the remaining 50% shareholding that Enterprise AOL held in EnterpriseMouchel in February 2013 and the company became a wholly owned subsidiary of the Mouchel Group. In August 2013,
