Kier, the property, residential, construction and services group, has sold Mouchel Consulting to WSP Global for £75m – with a reported profit of £40m.
Mouchel Consulting provides engineering, environmental and asset management consultancy services, principally to infrastructure markets, and has been closely involved in the development of driverless technology.
Kier acquired Mouchel Consulting in June last year as part of its acquisition of Mouchel. At that time it said it was 'now the sector leader in the growing UK highways management and maintenance market'.
In July, Kier announced that it was undertaking an evaluation of the strategic options for the Mouchel Consulting business, including a possible disposal.
In a statement on Wednesday (12 October), Kier said it was ‘pleased to announce that it has completed the disposal of Mouchel Consulting to WSP Global Inc. (“WSP”) for a total consideration of £75m, satisfied in cash'.
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.’
Kier said the sale is ‘expected to result in an immediate profit of approximately £40m, subject to post-completion adjustments’. It will retain the net disposal proceeds 'for future investment purposes and to further reduce debt'.
For the financial year ended 30 June 2016, Mouchel Consulting reported revenue of £125m, generating an operating profit contribution of £8m and a profit before tax of £5m. The gross assets of the company, the subject of the disposal, were £29m at 30 June.