For immediate release
Thursday, 13 November 2008
Keller Group plc
Acquisitions in the US and the Czech Republic
Keller Group plc ("Keller" or "the Group"), the international ground
engineering specialist, announces the recent completion of bolt-on acquisitions
in the US and the Czech Republic.
Olden, US
The Group has purchased Craig Olden Inc ("Olden"), the leading earth retention
contractor in Texas, specialising in soil nailing services. Olden has a strong
reputation for innovative designs, which underpins its status as preferred
supplier of earth retention solutions to the Texas Department of Transport.
The total consideration for Olden is around $13.5m (£8.6m) including the
assumption of debt. Olden is expected to report annual revenues of around $32m
(£21m) for the year ended 31 October 2008, with approximately 75% of its sales
coming from the public sector.
As well as the opportunity to grow the Olden business outside of its home
market, its soil nailing expertise will help the Group's to further develop
this product in its other US markets.
Boreta, Czech Republic
The Group has also purchased Boreta spol sr.o. ("Boreta") a well-established
and highly profitable foundations specialist based in Zlin. Boreta operates
principally in the eastern part of the Czech Republic, where it offers a range
of heavy foundation techniques.
The total consideration for Boreta comprises an initial amount of around
CZK170m (£5.5m), together with an earn-out based on future profits. Boreta
reported annual revenues of CZK247m (£8.0m) for the year ended 31 December
2007.
Boreta's products complement the ground improvement and specialty grouting
techniques offered by Keller's existing Czech business. The acquisition, which
significantly strengthens Keller's position in this growing market, enables the
enlarged business to offer complete package solutions and provides scope to
grow the Boreta business outside of its home market.
Commenting on the acquisitions, Justin Atkinson, Chief Executive of Keller,
said:
"We are very pleased to have completed the purchases of Olden and Boreta, two
profitable and successful companies, which represent good fits with our
existing businesses and further our strategy of extending our global leadership
in specialist ground engineering.
"Once again, these acquisitions demonstrate Keller's ability to make
complementary, bolt-on acquisitions in different geographies which, together
with the organic development of our existing businesses, have underpinned our
consistent delivery of long-term growth."
For further information, please contact:
Keller Group plc www.keller.co.uk
Justin Atkinson, Chief Executive 020 7616 7575
James Hind, Finance Director
Smithfield 020 7360 4900
Reg Hoare/Will Henderson
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