Bedfordshire-based services firm Kier has today (July 8) announced that it has completed the takeover of May Gurney, in a deal believed to be worth around 221 million.
The deal sees May Gurneys staff, operations and assets merged into the Kier Group portfolio, with the combined company set to offer services including waste collection, highways maintenance and construction. May Gurney will rebrand as Kier Services in the coming weeks.
The two firms have today begun the process of merging their operations, with May Gurneys 6,000 staff set to join Kier Groups existing 10,000-strong workforce. The deal allows Kier to expand its operations in the waste sector, with May Gurney currently holding around 20 council waste collection contracts nationwide.
May Gurneys board agreed to the terms of the takeover by Kier in April, having previously accepted a rival bid from engineering firm Costain, worth around 177 million (see letsrecycle.com story). Costain later withdrew its bid, stating that a merger would not be in the best interests of its shareholders.
Commenting on the deal, Kier Group chief executive Paul Sheffield, said: We are delighted that our bid for May Gurney is now complete. This gives us a Services division that not only has a greater scale, but which has added significant highways maintenance experience, a broader utilities offering and a greater spread of environmental services.
‘Our decision to acquire May Gurney represented a fundamental part of the Group strategy to significantly grow and diversify our Services business, not only giving us a greater critical mass in this sector but also a more complete offering to a wider range of customers.’
Paul Sheffield, Kier Group
Our decision to acquire May Gurney represented a fundamental part of the Group strategy to significantly grow and diversify our Services business, not only giving us a greater critical mass in this sector but also a more complete offering to a wider range of customers. Now we are better placed in the market to deliver more to existing and new customers.
Importantly, May Gurney and Kier share similar values which will go a long way towards the successful integration of both businesses. I would like to take this opportunity to welcome our new employees and trust they will enjoy playing a part in the future success of Kier Group.
Greg Michael, strategy and business development director, added: We are excited about joining forces with Kier; May Gurneys range of services complement Kiers existing offering and a combination of the two creates a marketleading and wellbalanced business and enhances our joint prospects.
Both companies have a clear and genuine commitment to customer service and quality and we remain focused on delivering an excellent service to our long-term clients and their customers.
The takeover sees Kiers managing director of environmental services, Nicola Peake, reunited with her former employer. Ms Peak left May Gurneys environmental services division in December 2011 after four years at the company, taking up her position at Kier in February 2012.
Kier already holds a number of waste and recycling contracts, and in 2012 bought a 50% stake in AD specialist BiogenGreenfinch, investing around 24.4 million in the company. The company also owns a materials recycling facility at Ettington, Warwickshire, after it acquired Pure Recycling in 2010.
The deal represents further consolidation in the services sector, coming months after services firm Enterprise was purchased in a 385 million deal by Ferrovial, the Spanish parent company of waste management firm AmeyCespa (see letsrecycle.com story).