Business
Acquisition of Waterfront Ser
Acquisition of Waterfront Ser.
About this update from Keller Group Plc
[{"type":"text","content":"\n RNS Number : 3651N Keller Group PLC 10 June 2010 \n \n\nThursday, 10 June 2010\n \n \nKeller Group plc\n \nAcquisition of Waterfront Services Pty Limited, Australia for an initial payment of A$37m (£21m)\n \nKeller 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 (£21m), including an estimated A$7m (£4m) of acquired net cash, together with a maximum deferred consideration of A$12m (£6.8m), based on future profits in the three years to 30 June 2013. \n \nWaterway 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. \n \nWaterway 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.\n \nThe 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.\n \nIn the year ending 30 June 2010, Waterway is expected to report an operating profit of around A$7m (£4m) on revenue of about A$55.0m (£31m). 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 (£21m).\n \nCommenting on the acquisition, Justin Atkinson, Chief Executive of Keller, said:\n \n\"Waterway is a highly respected and growing company which strongly compl...