Keller announced that it acquired the entire issued share capital of Moretrench Inc., a geotechnical contracting company operating predominantly along the East Coast of the U.S., from its employee shareholders for $90 million.
Moretrench has a strong heritage of complex geotechnical projects, and in 2017, had a revenue of $168 million, an operating profit of $11 million and EBITDA of $15 million (both excluding $2.8 million of charges relating directly to the Employee Share Ownership Plan and the transaction). Moretrench’s net assets in 2017 were over $66 million. The acquisition was funded in cash from Keller’s existing borrowing facilities.
Following the acquisition, Keller will be a capable geotechnical solutions provider on the East Coast and will be well positioned for the expected long-term renewal of infrastructure in the region. In addition, the acquisition gives Keller access to new niche geotechnical products as well as new industrial customers and should result in increased revenue and cost synergies. Keller and Moretrench have partnered on a number of successful projects in the past, which shows confidence in the mutual compatibility of culture and management approaches.
Alain Michaelis, chief executive of Keller, says, “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 U.S. and there should be good synergies.”
Keller offers the construction and civil engineering sectors a variety of ground engineering services. It has more than $2 billion in annual revenue and about 10,000 employees worldwide. For more information about Keller Group, visit www.keller.co.uk.