Acquisition of GeoConstruction Group, North Ame...
For immediate release Thursday 21 May 2015
Keller Group plc
("Keller" or "the Group")
Acquisition of GeoConstruction Group, North America
Keller, the international ground engineering specialist, announces that it has
agreed to purchase the net assets of the GeoConstruction group ("Bencor") of
Layne Christensen Company (NASDAQ: LAYN) for a consideration of around US$40m
(£26m). The business is headquartered in Dallas and operates throughout North
America. The exact consideration, to be paid in cash from Keller's existing
facilities, will depend on the level of working capital inherited on closing.
Bencor's traditional product offering is diaphragm walls ("D-walls"), a product
most often used in major infrastructure projects and which to date Keller has
only been able to offer customers on a limited basis and in certain
geographies. The acquisition will therefore strengthen Keller's product range
and its ability to offer complete packaged solutions both in North America and
elsewhere. The business will form part of the Group's North America Division.
D-wall projects tend to be large and Bencor has historically worked on less
than 10 projects a year. As a result, the size and timing of contracts has an
effect on annual revenues, which are typically between $50m to $80m a year.
As part of the acquisition, Keller will take on the existing, highly regarded
management team and all 150 employees, as well as Bencor's ongoing construction
contracts. It is anticipated that the order book at closing will be around
US$160m, of which about US$120m relates to the East Branch Dam Cutoff Wall
Rehabilitation Project in Pennsylvania. This contract is scheduled to run
through to the middle of 2018.
The acquisition remains conditional on the assignment to Keller of Bencor's
major ongoing construction contracts and completion is expected by the end of
June 2015.
Alain Michaelis, Chief Executive of Keller, said:
"This important acquisition marks another milestone in our strategy of
extending our global leadership by expansion into new technologies.
"The addition of Bencor's D-wall technology and equipment will allow us to
further expand our global customer offer for complex projects."
For further information, please contact:
Keller Group plc www.keller.co.uk
James Hind, Finance Director 020 7616 7575
Finsbury
Gordon Simpson, Rowley Hudson 020 7251 3801
Notes to Editors:
Keller is the world's largest independent ground engineering specialist,
providing technically advanced and cost-effective foundation solutions to the
construction industry. With annual revenue of around £1.6bn, Keller has
approximately 9,000 staff world-wide.
Keller is the clear market leader in the US and Australia; it has prime
positions in most established European markets; and a strong profile in many
developing markets.
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