Keller Group completes acquisition of US-based Moretrench Inc for $90m

Keller Group plc has completed the acquisition of Moretrench Inc., a geotechnical contracting company operating predominantly along the east coast of the US, from its employee shareholders for $90m.

At the end of February, the business had net cash of $4.3m.

Keller is the world’s largest geotechnical contractor, providing geotechnical solutions to the construction industry. With annual revenue of around £2bn, the London-headquartered firm has more than 10,000 employees world-wide.

In the year ending 31st December 2017, Moretrench had revenues of $168.3m, operating profit of $11.3m and EBITDA of $15.8m. Moretrench’s net assets as at 31 December 2017 were $66.4m.

The acquisition was funded wholly in cash from Keller’s existing borrowing facilities.

Following the acquisition, Keller said it will be “by far the most capable geotechnical solutions provider on the east coast” and will be well positioned for the expected long term renewal of infrastructure in the region.

Alain Michaelis, chief executive of Keller, said: “The acquisition of Moretrench is in line with our strategy of growing our product range and building strong customer-focused businesses. I am confident this will be an excellent addition to Keller.

“We know the business well, its people, technologies and geographic focus complement Keller’s existing businesses in the US and there should be good synergies.”