Keller Group plc ("Keller" or "the Group"), the international ground engineering specialist, announces that the Group has acquired Geo-Foundations Contractors, Inc. ("Geo-Foundations"), a Toronto-based specialist geotechnical contractor.
The consideration, paid in cash from the Group’s existing facilities, was C$9.2m (£5.7m), including an estimated C$0.6m (£0.4m) of acquired net debt.
Geo-Foundations principally serves eastern Canada, where it offers design-build solutions to the construction and mining industries. It has built a strong engineering reputation and has grown its revenue to around C$20m (£12.4m) in 2012. The business specialises in micro-piling, ground anchors, and specialty grouting services which, whilst well established in the US, are still relatively new to the Canadian market. A combination of increasing market acceptance of these techniques in Canada, along with the introduction of ground improvement techniques and assistance from Keller’s existing US business, is expected to fuel significant growth over time.
Commenting on the acquisition, Justin Atkinson, Chief Executive of Keller, said:
"Keller has worked in partnership with Geo-Foundations on a number of projects in recent years, building a relationship of mutual respect. I am confident that, together, we are well-positioned to fully exploit the opportunities in this attractive market.
"This acquisition builds on our strong track record of expanding into higher growth geographic regions through both organic growth and targeted acquisitions."
Note 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 £1.3bn, Keller has approximately 7,000 staff world-wide.
Keller is the market leader in the US and Australia; it has prime positions in most established European markets; and a strong profile in many developing markets.