(Alliance News) - Keller Group PLC on Wednesday said it has bought geotechnical services firm Recon Services for an initial USD23 million in cash from Oaktree Capital Management.
Added to this will be an expected earn-out of USD15 million relating to future contract wins up to the end of December 2022.
Houston, Texas-based Recon is a specialist geotechnical environmental remediation and industrial services contractor working mainly for industrial clients in the Gulf and east coasts of the US.
"This timely acquisition is strategically aligned to our objective of increasing Keller's market presence in our chosen local markets, and leveraging the synergy opportunities available as a consequence of being integrated into the Keller Group," commented Chief Executive Michael Speakman.
The purchase is expected to generate earnings in the first full year of ownership. The acquisition will be funded from existing borrowings, Keller stated.
Keller's shares were trading down 0.3% at 838.75 pence in London on Wednesday morning.
By Will Paige; willpaige@alliancenews.com
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Keller (KLR)