Kier is in preliminary discussions about mounting a takeover
Kier has announced that it is in preliminary discussions about mounting a takeover of Mouchel.
The Kier Group confirmed to the stock market this morning that it is in talks about a potential acquisition of Mouchel following recent press speculation about a potential tie-up.
Kier said that a further announcement will be made “if and when appropriate”.
Kier reported just over £3bn of turnover with pre-tax profits of £73.1m for the year ending June following its acquisition of services company May Gurney for £221m last year. Mouchel reported a pre-tax profit of £20.8m in the 12 months to 30 September 2013 on revenues of £555m in its latest full year results, published last December.
Kevin Cammack, building and construction analyst at Cenkos Securities, said Mouchel had been extensively restructured after it was forced to enter administration in 2012.
As a result, he said the company would cost more than when Costain and Interserve tried to buy it several years ago.
Cammack expressed concern that any deal to buy Mouchel could increase Kier’s debt pile, which had risen following the recent acquisition of May Gurney for £220m.