BRITISH construction firm Keller today announced that it plans to buy North American Piling for up to C$320m (£202.5m), in order to tap into the Canadian market.
Keller will initially pay C$227.5m for the Canadian piling business and up to a further C$92.5m depending on the company’s financial performance in the three years following completion of the deal.
Keller also announced today that it has placed 6.6 million shares at 890p per share, raising £58.7m to part-finance the acquisition.
Jefferies is acting as financial advisor and joint sponsor to Keller on the acquisition and joint bookrunner and underwriter on the equity placing. Investec is acting as joint sponsor to Keller on the acquisition and joint bookrunner and underwriter on the equity placing.
“The Board has identified Canada as a key target market and this acquisition of a complementary piling business represents an excellent opportunity to build substantially on Keller’s existing presence in that market,” said Justin Atkinson, chief executive of Keller.
“North American Piling is a market-leading business with attractive margins positioned in growth markets, including the resource-rich regions of Western Canada.”