Construction group Kier has agreed a merger with infrastructure services business Mouchel for an estimated worth of £265m.
This large scale acquisition will take the firms order book to more than £9.3bn, however the decision remains to be approved by the shareholders.
Mouchel, which operates internally providing design, project delivery and management, has more than 6,500 employees and revenues pushing past £596.4m.
Kier had said that their takeover of Mouchel will offer annual savings of more than £10m, benefitting the shareholders of Kier in the long-term.
Haydn Mursell (pictured above), chief executive of Kier, said: “Over the last three years, Mouchel has been transformed into a strong business with market leading positions.
“The combination of Kier and Mouchel, particularly in the provision of UK highways maintenance services, creates a leader in a growing marketplace. The acquisition is consistent with and accelerates the delivery of our Vision 2020 strategy and will provide compelling value ot shareholders.”
Mouchel chief executive Grant Rumbles went further: “Kier and Mouchel are an excellent fit. The enlarged company will enable us to improve our offer to customers and to enhance the career opportunities of our employees.
“This deal is testimony to the successful turnaround of Mouchel following its 2012 restructuring. Refocusing the business on its core strengths and targeting profitable growth has brought us to a position where our order book is now more than £2.8bn.
“For that I thank my excellent management team and all of our staff for their hard work and determination over the last few years.”
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