KLR Keller Group Plc

 

TIDMKLR 
 
RNS Number : 3651N 
Keller Group PLC 
10 June 2010 
 

Thursday, 10 June 2010 
 
 
                                Keller Group plc 
 
Acquisition of Waterfront Services Pty Limited, Australia for an initial payment 
                                of A$37m (GBP21m) 
 
Keller Group plc ("Keller" or "the Group"), the international ground engineering 
specialist, has acquired privately-owned Waterfront Services Pty Limited, a 
Sydney-based near-shore marine foundation contractor trading as Waterway 
Constructions ("Waterway").  The total consideration, to be paid in cash from 
the Group's existing facilities, will comprise an initial payment of A$37m 
(GBP21m), including an estimated A$7m (GBP4m) of acquired net cash, together 
with a maximum deferred consideration of A$12m (GBP6.8m), based on future 
profits in the three years to 30 June 2013. 
 
Waterway specialises in the construction of foundations for wharves, jetties and 
other marine structures and the maintenance and extension of existing 
structures.  The business was formed in 1993 and has since grown to become one 
of the largest specialist near-shore marine foundation contractors on the east 
coast of Australia, with a strong reputation for excellence in engineering. 
 
Waterway will maintain a strong presence in New South Wales whilst looking to 
increase its penetration of the Queensland and Victoria markets.   In the medium 
term, there are good prospects for expansion into Western Australia, where 
planned minerals and energy projects are expected to generate strong demand for 
both land and near-shore marine based foundation services. 
 
The acquisition also offers strong potential for synergy with the Group's 
existing foundation businesses, uniquely positioning Keller Australia to offer 
combined packages of land and near-shore marine foundation solutions. 
 
In the year ending 30 June 2010, Waterway is expected to report an operating 
profit of around A$7m (GBP4m) on revenue of about A$55.0m (GBP31m).   However, 
going forward Keller expects the operating margin to ease back to its historic 
level of around 10%.   Gross assets at 31 December 2009 were A$37m (GBP21m). 
 
Commenting on the acquisition, Justin Atkinson, Chief Executive of Keller, said: 
 
"Waterway is a highly respected and growing company which strongly complements 
our existing business in Australia.   As the demand for a combination of land 
and marine based foundation services continues to grow, we are delighted that in 
future customers of Keller Australia will be able to benefit from a packaged 
solution which meets this need. 
 
"This acquisition will consolidate our position as foundations market leader in 
Australia, enabling us to take full advantage of the excellent opportunities we 
are continuing to see in this strong market." 
 
For further information, please contact: 
 
+------------------------------------+------------------------+ 
| Keller Group plc                   |      www.keller.co.uk  | 
+------------------------------------+------------------------+ 
| Justin Atkinson, Chief Executive   |          020 7616 7575 | 
+------------------------------------+------------------------+ 
| James Hind, Finance Director                                | 
+-------------------------------------------------------------+ 
|                                                             | 
+-------------------------------------------------------------+ 
| Finsbury                           |          020 7251 3801 | 
+------------------------------------+------------------------+ 
| James Leviton/Clare Hunt           |                        | 
+------------------------------------+------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 ACQKKCDBOBKDBAK 
 

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