Kier completes £221m May Gurney purchase

 
Marion Dakers
CONSTRUCTION and services group Kier yesterday said it has booked more than £1.8bn of new contracts in this financial year and that trading was in line with forecasts.

Kier also announced that its £221m purchase of May Gurney is now complete, and that its executives were talking with key clients to help with the integration of the two firms.

The FTSE 250 company trumped Costain’s bid for May Gurney in April after offering a higher price and around £20m a year in synergies.

Current trading is in line with expectations, the firm said, with operating margins steady at two per cent. Its clients range from central and local government to supermarkets and coal mines.

The company said last month’s government spending review and its focus on big capital projects was “encouraging for both our construction and services businesses”.

ADVISERS KIER’S TAKEOVER OF MAY GURNEY

NUMIS’
HERACLIS ECONOMIDES

Kier’s takeover offer for May Gurney involved a number of advisers on both sides. JP Morgan Cazenove and Numis Securities acted as financial advisers, sponsors and brokers to Kier. The JP Morgan team was headed up by Andrew Truscott, Christopher Dickinson and Virginia Khoo.

On the Numis side, Heraclis Economides and Christopher Wilkinson lead the team. Numis has worked with Kier since 2010, and also counts Interserve and Crest Nicholson among its clients.

May Gurney hired Canaccord Genuity as financial adviser, led by Chris Robinson and Peter Stewart. Robinson has worked at Canaccord for 20 years, with a particular focus on construction and facility services. Stewart has been at the company for five years and was previously a solicitor at Allen & Overy.

Peel Hunt is acting as broker and adviser to the target company, with a team led by Justin Jones and Mike Bell.