Keller to Buy North American Piling for Maximum C$320 Million
Keller Group Plc (KLR) plans to acquire Canadian foundations company North American Piling for a maximum payment of C$320 million ($314 million) to tap growing construction and energy markets in the region.
The purchase from North American Energy Partners Inc. (NOA) will add a business that generated C$236.5 million in annual revenue and operating profit of C$38.5 million, London-based Keller said in a statement today. The deal will be financed by a placing and existing credit lines.
“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,” Chief Executive Officer Justin Atkinson said in a statement. “North American Piling is a market-leading business with attractive margins positioned in growth markets, including the resource-rich regions of Western Canada.”
Keller is looking to raise 58.7 million pounds ($91 million) in a share sale to help provide funds for its acquisition. Investec Bank Plc and Jefferies International Ltd. are acting as joint bookrunners.
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