Keller today announces that it is in discussions to acquire Moretrench Inc., a geotechnical contracting company operating predominantly along the east coast of the US.
Keller today announces that it is in discussions to acquire Moretrench Inc., a geotechnical contracting company operating predominantly along the east coast of the US. Moretrench is an all employee owned business and Keller is making this announcement as the fact that discussions are ongoing is now being communicated to a much wider group of Moretrench employees.
Moretrench has a strong heritage of complex geotechnical projects and, in 2016, had revenue of US$170m, operating profit of US$9.3m and EBITDA of US$13.9m (excluding US$2.3m of charges relating directly to the Employee Share Ownership Plan). It is envisaged that the acquisition, should it proceed, will be funded wholly in cash using existing borrowing facilities.
The enlarged entity will represent by far the most capable geotechnical solutions provider on the east coast and will be very well positioned for the expected long run renewal of infrastructure. In addition, the acquisition gives Keller access to new niche geotechnical products as well as new industrial customers and should have good revenue and cost synergies. Keller and Moretrench have partnered on a number of successful project JVs in the past which gives confidence in the mutual compatibility of culture and management approaches.
The acquisition remains subject to the satisfactory completion of due diligence.
Keller will make a further announcement in due course.
Notes to Editors:
Keller is the world's largest geotechnical contractor, providing technically advanced geotechnical solutions to the construction industry. With annual revenue of around £2.0bn, Keller has approximately 10,000 staff worldwide. Keller is the clear market leader in the US, Canada, Australia and South Africa; it has prime positions in most established European markets and a strong profile in many developing markets.
For more information, please go to:
http://www.keller.com/investors.aspx and http://www.keller.com/investors/investment-case.aspx.
Classification: Inside Information (DTR Annex 1)
This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations. On the publication of this announcement via a Regulatory Information Service ("RIS"), this information is considered to be in the public domain.