Kier Group PLC Disposal of Mouchel Consulting to WSP Global (3163M)
October 12 2016 - 1:00AM
UK Regulatory
TIDMKIE
RNS Number : 3163M
Kier Group PLC
12 October 2016
Disposal of Mouchel Consulting to WSP Global Inc.
Kier Group plc ("Kier"), a leading property, residential,
construction and services group, is pleased to announce that it has
completed the disposal of Mouchel Consulting to WSP Global Inc.
("WSP") for a total consideration of GBP75m, satisfied in cash.
Mouchel Consulting, acquired in June 2015 as part of Kier's
acquisition of Mouchel, provides engineering, environmental and
asset management consultancy services, principally to
infrastructure markets. On 4 July, Kier announced that it was
undertaking an evaluation of the strategic options for the Mouchel
Consulting business including a possible disposal.
For the financial year ended 30 June 2016, Mouchel Consulting
reported revenue of GBP125m generating an operating profit
contribution of GBP8m and a profit before tax of GBP5m. The gross
assets of the company, the subject of the disposal, were GBP29m at
30 June 2016.
The disposal is expected to result in an immediate profit of
approximately GBP40m, subject to post-completion adjustments. The
net disposal proceeds will be retained by Kier for future
investment purposes and to further reduce debt, supporting Kier's
Vision 2020 target of net debt to EBITDA ratio of less than 1x
which was achieved ahead of schedule in 2016.
Haydn Mursell, chief executive of Kier, commented: "Having
completed the integration of Mouchel, we are well progressed with
the simplification of our portfolio of businesses. The disposal of
Mouchel Consulting continues this process and provides increased
capital to focus on the opportunities across our core businesses
which will underpin the Group's future growth."
- E N D S -
Enquiries:
Faeth Birch / Daniela Fleischmann Finsbury +44 (0)20 7251 3801
Kier press office +44 (0)1767 355903
Louise Turner-Smith, Head of Investor Relations, Kier +44 (0)7976 790012
This information is provided by RNS
The company news service from the London Stock Exchange
END
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