The $92m cash deal will result in an immediate profit of $49m for UK contractor
Kier Group, the UK-based contractor, has sold Mouchel Consulting to WSP, the global consultant, for £75 million ($92m) in cash, it has been announced.
Kier bought Mouchel Consulting in June 2015 as part of its $325.7 million acquisition of the Mouchel Group. The British construction and support services company said on July 4 that it was considering “strategic options for Mouchel Consulting,” a Reuters report said.
The contractor had said that it was looking to dispose of the consultancy part of the business – which has around 2,000 members of staff – as part of its plans to focus on core business opportunities.
“Having completed the integration of Mouchel, we are well progressed with the simplification of our portfolio of businesses,” said Haydn Mursell, chief executive of Kier.
“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.”
Having reaffirmed its full-year forecast in September, Kier said that the sale would result in an immediate profit of $49.19 million, which would be used for investments and to cut debt.
Mark Naysmith, managing director of WSP in the UK, said in a statement: “We are pleased to join forces with Mouchel Consulting, which is recognised as a highly successful firm in the UK, with a particularly strong public sector presence in transportation.
“Our combined expertise across the public and private sectors will enhance our design capabilities, providing greater depth and diversity in related skill sets.
“This will position us as trusted advisors, enabling us to deliver our clients’ projects across the whole life cycle of their projects.
“Together, we will now be a top-tier player for local and national government transportation projects, as well as in local authority markets.”
Mouchel Consulting reported $153.6 million revenue, generating an operating profit of $9.82 million and a profit before tax of $6.14 million in the year to June 30, 2016. Gross assets were valued at $35.62 million.