Keller has announced that it has bought out the geotechnical business of South Africa-based civil engineering and construction company Esorfranki for an initial consideration of R500M (£31M).
“This important acquisition marks another milestone in our strategy of extending our global leadership by expansion into new, higher growth regions,” said Keller chief executive Justin Atkinson.
According to Keller, Esorfranki Geotechnical is the largest ground engineering business in South Africa and generated revenues of R788M (£49M) in the last financial year with 46% of the sales coming from outside South Africa.
Esorfranki Geotechnics’ current management team will remain in place, which Keller has said will accelerate its entry into “selected sub-Saharan construction markets, where significant growth is expected over the medium to long term, fuelled by major infrastructure and resources-related projects”. The business will form part of Keller’s EMEA division.
Atkinson added: “The combination of Esorfranki Geotechnical’s local knowledge and resources with Keller’s scale, experience and broad range of techniques will make us ideally placed to undertake complex major projects requiring design expertise and multi-product solutions in a region where we expect the longer-term opportunities to be significant.”
Completion of the £31M deal is expected by the end of November and Keller has deferred a further payment of R150 (£9.4M) dependent on the achievement of a certain level of profits over the three years following the acquisition.