Mouchel looks to expand in local markets after Kier deal

 

Chief executive of Mouchel, Grant Rumbles, has revealed his firm will be seeking to expand its presence in the local authority highways market following Kier agreeing to buy the company in a £265m cash deal.

Kier plans to finance the buy-out using a fully underwritten £340m rights issue, which will help cover Mouchel's debt and the integration costs as well. The transaction is due to be completed in June, pending shareholder approval.

The deal is set to create a highways infrastructure superpower with the two businesses combined boasting a £3.6bn turnover and servicing about 44,000km of total UK road, and 28% of the country’s strategic road network.

Speaking exclusively to Surveyor, Mr Rumbles said the market was still very competitive but that the two firms were a ‘perfect fit for each other’ as Kier would help Mouchel move into the local market while Mouchel would bring its expertise, including smart motorways experience, from the strategic road network.

‘We will be hoping to expand our work with local government. We see ourselves as asset management experts so that’s one thing we can offer to councils. Price will always be a factor in bidding for contracts, but it’s encouraging to see the highways sector as a whole moving towards more of an emphasis on quality. That’s what we need to see.’

Mr Rumbles, who took over in October 2011, said the deal was testimony to the remarkable turnaround Mouchel had made since falling into a drastic position prior to him taking over and a 2012 restructuring.

At one point the firm took on a £180m debt refinancing deal with banks to help resuscitate its fortunes as it share price dropped to roughly 10p.

Mr Rumbles maintained that the quality of the company’s work and its personnel had helped steer it through the troubled times: ‘I would say our top 70 people could rival those in any firm in the world. Kier respect our brand and our position in markets all over the world.’

Haydn Mursell, CEO of Kier plc added: ‘Over the last three years, Mouchel has been transformed into a strong business with market leading positions. The combination of Kier and Mouchel, particularly in the provision of UK highways maintenance services, creates a leader in a growing marketplace.

‘The acquisition is consistent with and accelerates the delivery of our Vision 2020 strategy and will provide compelling value to shareholders.’

 
comments powered by Disqus
 
 
highways jobs

Highways Estimator

Ringway
Competitive Salary
As the Highways Estimator you will join a busy environment and become an integral part of the team. Hounslow (London Borough), London (Greater)
Recuriter: Ringway

County Highways Manager

Lincolnshire County Council
£55,503 - £60,578
Seeking a highly motivated leader and an excellent communicator, who has a proven ability to build relationships and trust, leading by example. Lincolnshire
Recuriter: Lincolnshire County Council

Local Highways Manager (East) - Lincolnshire County Council

Lincolnshire County Council
G12 £43,662 - £50,430
Seeking someone who combines excellent technical knowledge with a dedication to the customer. Lincolnshire
Recuriter: Lincolnshire County Council

Assistant Director (Planning, Regeneration & Transport)

Rotherham Metropolitan Borough Council
£87,791 per annum  
This is an exciting time to join Rotherham and make a real difference. We are looking for an outstanding Assistant Director who will bring... Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Corporate Director

Islington London Borough Council
Up to £135k
You will share our values and be passionate about helping us shape the Islington of the future. Islington, London (Greater)
Recuriter: Islington London Borough Council

Assistant Engineer

Cambridgeshire County Council
£21,074 - £30,756
Looking for strong team players interested in working with a variety of professional and community partners across Cambridgeshire. Cambridgeshire
Recuriter: Cambridgeshire County Council

Junior Energy Manager Apprentice

Brent Council
£15,000 p.a. inc.
The right person for this job will be pro-active and innovative in finding a way forward. Wembley, London (Greater)
Recuriter: Brent Council

Career Grade Drainage Engineer

Swindon Borough Council
£19,092 to £40,680 p.a
Working in the asset management team, you’ll support the work of the Lead Local Flood Authority (LLFA) and Highways Authority. Swindon, Wiltshire
Recuriter: Swindon Borough Council

Highway Construction Project Manager

Brent Council
£50,442 - £53,526 p.a. inc.
We are looking for an accomplished highway construction project manager to support the delivery of two high priority highway schemes. Brent, London (Greater)
Recuriter: Brent Council

Traffic Signals & UTMC Manager

Bristol City Council
£42,683 - £45,591
Looking for someone with proven management experience, enthusiasm, creativity, vision and good communication skills. City of Bristol
Recuriter: Bristol City Council

Principal Highways Project Engineer

Knowsley Metropolitan Borough Council
£34,106 - £35,229 per annum
The post holder will be responsible for project managing the delivery of two highway projects on the Key Route Network. Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Traffic Schemes Officer

Oxfordshire County Council
£22,021 - £29,636 per annum
An exciting opportunity has arisen to play a central role with the Traffic Team in the maintenance of the highway network... Kidlington, Oxfordshire
Recuriter: Oxfordshire County Council

Traffic Engineer

Telford & Wrekin Council
£29,055 to £30,756
This is an exciting opportunity to join Telford & Wrekin Council’s Traffic Management Team! Telford, Shropshire
Recuriter: Telford & Wrekin Council

Assistant Engineer – Traffic Regulation

Telford & Wrekin Council
£23,866 to £25,463
This is an exciting opportunity to join Telford & Wrekin Council’s Traffic Management Team. Telford, Shropshire
Recuriter: Telford & Wrekin Council

Environment Officer

Kirklees Metropolitan Council
£29,909 – £32,233 Grade 11 - £33,136 - £35,229
All Environment Officers lead, project manage and/or co-ordinate large environmental projects... Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Highways Quantity Surveyor

Leicester City Council
£30,756 - £33,136 pro-rata per annum
Working in the Highways Maintenance Group, you will be responsible for the operational highway maintenance activities Leicester, Leicestershire
Recuriter: Leicester City Council

Highways Engineer/Inspector

Royal Borough of Greenwich
£22956 - £32637 per annum
Highways Engineer/Inspector - PermanentThere are plenty of reasons to take a closer look at Royal Greenwich.Royal Greenwich is undergoing a huge trans England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Senior Project Engineer

Derbyshire County Council
Grade 13 £39,867 - £43,282 per annum
Derbyshire County Council is looking for an enthusiastic, enterprising and experienced laboratory manager Derbyshire
Recuriter: Derbyshire County Council

Engineer - Bridges

Cambridgeshire County Council
£32,825 - £35,401
We have a vacancy for a Structures Engineer working within the Bridge’s team! Cambridgeshire
Recuriter: Cambridgeshire County Council

Engineer

Cambridgeshire County Council
£32,825 - £35,401
You will be required to lead the delivery of a wide range of highway improvements and maintenance projects... Cambridgeshire
Recuriter: Cambridgeshire County Council