Kier has agreed to sell its stake in Australian road maintenance business KHSA to Australian infrastructure specialists Downer Group for £24M.
KHSA had previously been a subsidiary of Mouchel, which Kier bought out in 2015. The firm made £7M in profit last year and has total assets of £52M.
The deal is expected to generate £15M of profit for Kier, who hope the deal will help towards reducing its net debt.
Kier’s net debt was revealed to have stood at £375M in the company’s results for the year up to June 30, 2018.
The sale of KHSA comes as the company aims to fulfil its pledge to cut its average net debt to £250m by 2021.
Kier is seeking to generate £50m from non-core business disposals as part of its plan to cut its debt.
News of the sale comes after Kier earlier this year announced a full year pre-tax profit increase of 9% for the year to June 2018.
In the financial year ending in June 2018, Kier’s underlying profit increased to £137M from £126M the previous year. The company’s total order book also hit an all-time high of £10.2bn, when services are accounted for.
Kier bosses at the time claimed the profits had come despite “significant turbulence” in its markets during the year.
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