Keller Buys Geotechnical Contracting Firm Moretrench For USD90 Million

LONDON (Alliance News) - Keller Group PLC on Thursday said it has acquired US geotechnical contracting company Moretrench Inc for USD90.0 million.

Moretrench in 2017 posted revenue of USD168.3 million, operating profit of USD11.3 million, and earnings before interest, tax, depreciation and amortisation of USD15.8 million.

The acquisition was funded in cash from Keller's existing borrowing facilities.

Following the acquisition, Keller said it will be well positioned for the expected long-term renewal of infrastructure in the US. In addition, the acquisition gives Keller access to "new niche geotechnical products", as well as new industrial customers which should result in good revenue and cost synergies.

Keller and Moretrench have partnered on a number of joint ventures in the past, "which gives confidence in the mutual compatibility of culture and management approaches".

"The acquisition of Moretrench is in line with our strategy of growing our product range and building strong customer-focused businesses. I am confident this will be an excellent addition to Keller. We know the business well, its people, technologies and geographic focus complement Keller's existing businesses in the US and there should be good synergies," said Keller Chief Executive Alain Michaelis.

Keller shares were up 3.3% at 885.00 pence on Thursday.