Piling contractor Keller is to acquire North America Piling from North American Energy Partners in order to strengthen its position in the Canadian foundations market.
If approved by shareholders Keller will pay £202.5M for the business with £58.5M of the total deferred and payment dependant on North American Piling’s financial performance in the three years following completion.
Keller said the acquisition would strengthen its position by increasing its exposure to the North American energy and resources sector and expand its presence in the “relatively under-developed” Canadian geotechnical sector.
“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 Keller chief executive Justin Atkinson.
“North American Piling is a market-leading business with attractive margins positioned in growth markets, including the resource-rich regions of Western Canada. The business has a strong record of growth delivered by an experienced management team who are transferring to Keller. Importantly, the acquisition will be significantly earnings enhancing.”
According to Keller, Edmonton-based North American Piling has been successfully operating in the piling in construction markets across Canada, including the Alberta oil sands region for over 25 years. In the most recent financial year to 31 March 2013, the company generated revenues of £149.7M and an operating profit of £24.4M.