02/10/2007
US Acquisition of H J Foundation Inc
Keller Group plc (“Keller” or
“the Group”), the international ground engineering
specialist, announces the purchase of the business and assets of H
J Foundation Inc (“HJ”).
HJ, a specialist piling contractor, is the
market leader in Florida in Continuous Flight Auger (CFA) piles, a
growing product line which is new to Keller in the US. In the
year to 31 December 2006, HJ reported operating profit of around
$25m (£12.5m) on sales of around $92m
(£46m).
The business has enjoyed tremendous success in
recent years, benefiting in particular from the very buoyant
condominium market in Florida. In recent months these
exceptional market conditions have been returning to more
sustainable levels and this has been fully reflected in the
purchase price. Keller is paying an initial sum of around $49m
(£24.5m), payable in cash from its existing resources, with a
potential earn out based on future profits. No earn out will
be paid unless average annual EBITDA over the 27 months to 31
December 2009 exceeds $12m.
The acquisition, which is expected to be
earnings enhancing from 2008, gives Keller access to a new piling
market in Florida, as well as enabling the Group to accelerate the
introduction of CFA piling in its other US businesses.
Commenting on the acquisition, Justin
Atkinson, Chief Executive of Keller, said:
"We are pleased to have completed this purchase
of HJ which, by adding a complementary product line, represents an
excellent strategic fit with our existing US foundation
businesses. We see significant scope for HJ to support
Keller’s established US businesses to develop CFA piling
elsewhere in the US, where the non-residential markets remain
good.
“This purchase marks further progress in
our strategy of consolidating our global leadership in specialist
ground engineering services, through a combination of organic
growth and targeted acquisitions.”
For further information, please contact:
| Keller Group plc |
|
| Justin Atkinson, Chief Executive |
020 7616 7575 |
| James Hind, Finance Director |
|
 |
|
| Smithfield |
020 7360 4900 |
| Rupert Trefgarne/Will Henderson |
|
|
