Kier completes $405m Mouchel takeover
The combined company's order book following completion of the acquisition stands at $14.2bn
Kier Group announced the completion of its $405.3m (£265m) takeover of consulting engineering firm, Mouchel, on Monday, 8 June, 2015.
Mouchel was previously taken over by its lending banks in 2012 after collapsing into administration. Former shareholders were paid “just a penny” per share at the time.
The company had earlier rejected takeover offers from Costain and Interserve, despite the attractive offers to get paid up to $2 (£1.35) per share.
Mouchel’s highest valued offer at the time was $267.6m (£175m). Kier completed a $520m (£340m) rights issue to finance the acquisition earlier this month. The combined company will boast of a $14.2bn (£9.3bn) order book.
Kier's chief executive officer 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.”
Kier's decision to acquire Mouchel was announced in April 2015. Mouchel is globally recognised as the provider of repair and maintenance services to the UK motorway and trunk road network, building.co.uk reported.
Watch Haydn Mursell comment on the acquisition here: