9th Oct 2013 09:18
LONDON (Alliance News) - Ground engineering company Keller Group PLC Wednesday said it will buy the geotechnical division of Johannesburg-listed civil engineering and construction company Esorfranki Ltd for an initial consideration of SAR500 million, or GBP31 million, bolstering its operations in sub-Saharan Africa.
It may also pay a maximum deferred consideration of SAR150 million, or GBP9.4 million, as long as the unit meets certain profit targets over the next three years. It expects the deal to complete by the end of November and will pay all the money in cash.
"The combination of Esorfranki Geotechnical's local knowledge and resources with Keller's scale, experience and broad range of techniques will make us ideally placed to undertake complex major projects requiring design expertise and multi-product solutions in a region where we expect the longer-term opportunities to be significant," Keller Chief Executive Justin Atkinson said in a statement.
Esorfranki Geotechnical is the largest ground engineering business in South Africa, offering design and build services to the mining, civil engineering and construction industries, according to Keller. It made revenue of GBP49 million in the year to end-February, nearly half of which was made outside South Africa, and an operating profit of GBP3.3 million excluding a GBP1.5 million profit on the sale of a property.
Keller Group shares were down 0.2% at 939.89 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Keller