Acquisition

Keller Group PLC
18 November 2002

Monday 18 November 2002

                            Keller Group plc

KELLER INVESTS IN JOINT VENTURE IN SPANISH GROUND ENGINEERING MARKET

Keller Group plc ('Keller'), the global construction services group, today
announces that it has entered into a conditional agreement to create a joint
venture business with Terratest Tecnicas Especiales S.A. ('Terratest') - one of
Spain's leading ground engineers - to provide a wide range of geotechnical
services in Spain.

The joint venture company - to be known as Keller-Terra - will take over the
ground engineering activities of Terratest and Keller's 'Vibro' ground
improvement business in Spain.  Terratest's products - which include permeation
grouting, anchors and nailing, micropiling and jet grouting - generated profit
before tax of €4.3m (£2.7m) on sales of €22.5m (£14.4m) in the year ending 31
December 2001 and had net assets of €7.1m (£4.5m) as at that date, whilst the
complementary Keller products generated profit before tax of €0.08m (£0.05m) on
sales of €1.1m (£0.7m) in the same period.

The initial consideration for Keller's 51% stake will be satisfied by the issue
of 3,029,000 new Keller shares to Terratest, which will be retained for a period
of at least 12 months following their issue.  Further consideration up to a
maximum of £1.5m (to be satisfied by new Keller shares valued at their market
value at the time the further consideration is due) will become payable in 2004
if Keller-Terra meets certain profit targets in the financial year ending 31
December 2003.  The investment in Keller-Terra will be broadly earnings neutral
in the first year, but will offer significant opportunities for future growth.

Spain is now the fifth largest construction market in Europe, with high levels
of infrastructure spend.  As civil engineering represents some 25% of the
market, it drives strong demand for widespread ground engineering applications.
Through the partnership, Keller will be seeking to extend the use of its
advanced 'Vibro' technology as a quicker and cheaper alternative to traditional
piling methods.

Keller expects the acquisition, which is conditional upon the finalisation of
certain ancillary documentation and formal registration processes required under
Spanish law, to be completed by the end of this year.

Tom Dobson, Keller Group plc Chief Executive, said:

'This is an excellent opportunity for Keller to penetrate a growing and
attractive market in partnership with Terratest, whose reputation and routes to
market are well-established.  The acquisition meets our strategic aim of further
strengthening our global leadership in Foundation Services, whilst expanding our
range of Specialist Services.'


For further information, please contact:

Keller Group plc                       020 8341 6424
Tom Dobson, Chief Executive Officer
Justin Atkinson, Finance Director
Jackie Holman, Company Secretary

Weber Shandwick Square Mile            020 7950 2883
Reg Hoare/Josh Royston


A conference call for analysts and investors to discuss today's announcement
with Tom Dobson and Justin Atkinson, will be held today at 11.30am.
Participants should dial 08452 453471 from the UK and ++ 44 1452 542300 from
abroad.




                      This information is provided by RNS
            The company news service from the London Stock Exchange