(Alliance News) - Keller Group PLC has won a USD160 million deal connected to the development of an energy site in the Gulf Coast region of the US, the London-based geotechnical contractor said Monday.
"The contract is expected to mobilise in 2022 and conclude in 2023 and comprises ground preparation, primarily through soil stabilisation, for the construction of an energy facility," Keller said.
Shares in Keller were up 1.6% at 918.00 pence in London on Monday morning.
The pact was won by its Recon Services subsidiary, with the project similar to work that Recon has performed at other energy facilities in the region. Keller bought Recon back in July for an initial USD23 million in cash from Oaktree Capital Management.
Once the Gulf Coast project mobilises, Keller will pay an additional earn-out for the Recon acquisition. In July, the company said the acquisition consideration could rise to up to USD38 million.
"This contract award reflects Recon's and Keller's excellent track record using soil stabilisation and Keller's extensive experience in similar energy construction projects around the world. The addition of Recon to the group strategically aligns 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 part of the Keller Group," commented Michael Speakman, Keller chief executive.
By Will Paige; willpaige@alliancenews.com
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Keller (KLR)