Kier sells Mouchel Consulting for £75m

Mouchel Consulting, acquired in June 2015 as part of Kier’s acquisition of Mouchel, provides engineering, environmental and asset management consultancy services, principally to infrastructure markets.

In July this year, Kier announced that it was undertaking an evaluation of the strategic options for the Mouchel Consulting business including a possible disposal.

Mouchel Consulting reported revenue of £125m for the financial year ended 30 June 2016, generating an operating profit contribution of £8m and pre-tax profit of £5m.

The disposal is expected to result in an immediate profit of around £40m, subject to post-completion adjustments. The net disposal proceeds will be retained by Kier for future investment purposes and to further reduce debt.

Haydn Mursell, chief executive of Kier, said: “Having completed the integration of Mouchel, we are well progressed with the simplification of our portfolio of businesses.

“The disposal of Mouchel Consulting continues this process and provides increased capital to focus on the opportunities across our core businesses which will underpin the Group’s future growth.”