2nd Jul 2015 06:31
LONDON (Alliance News) - FTSE 250-listed construction and property company Kier Group PLC on Thursday said it has struck a deal to sell its fleet and passenger services business, Kier FPS Ltd, for GBP17.9 million in cash.
Kier is selling the business to Alpha Holdco 1 Ltd, a vehicle managed by private equity firm Endless. The sale includes the transfer of the division's finance lease debt of around GBP32 million, Kier said.
Kier has also signed a five-year deal with the division under which FPS will continue to supply fleet services to Kier's local authority highways and utilities business.
The proceeds from the sale will be used to pay down Kier's debt and finance leases and to fund growth opportunities, it said.
"FPS was acquired as part of the May Gurney transaction. However, in light of our strict return on capital requirements, we concluded that it would be appropriate to dispose of FPS to a specialist operator which will be managed by the existing management team," said Haydn Mursell, Kier's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Kier