Endless backs £18m deal

Yorkshire private equity firm Endless has backed the £18m sale of Keir’s ​​fleet and passenger services business to a management buy out team.
By The Newsroom
Published 2nd Jul 2015, 10:12 BST
Picture: Gareth Fuller/PA WirePicture: Gareth Fuller/PA Wire
Picture: Gareth Fuller/PA Wire

Property to construction group Keir said the sale of Kier FPS will include the transfer of FPS’ finance lease debt of £32m.

FPS is a provider of specialist vehicle contract leasing and fleet management services to public sector clients and also includes Kier’s local authority highways and utilities businesses.

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FPS became part of Kier as a result of the May Gurney acquisition in 2013 and has been under review since then.

​Haydn Mursell, Kier’s ​c​hief ​e​xecutive, said: “FPS was acquired as part of the May Gurney transaction. However, in light of our strict return on capital requirements, we concluded that it would be appropriate to dispose of FPS to a specialist operator which will be managed by the existing management team.”

​Kier and FPS have entered into a five-year agreement under which FPS will continue to supply Kier with fleet services to its local authority highways and utilities businesses.

Proceeds from the sale will be used to reduce Kier’s debt and finance leases and to fund growth opportunities.

FPS reported third party revenues of £36m​ in the year to June 2014 and a pre-tax profit of £4m alongside gross assets of £55m.​

Related topics:YorkshireKierProperty