Kier sells Mouchel Consulting to WSP

Kier Group has sold Mouchel Consulting to WSP Global  for £75m. Kier had acquired the consulting arm of Mouchel as part of their £265m acquisition of Mouchel in 2015 and the sale follows an announcement in July 2016 that Kier was undertaking an evaluation of the strategic options for the 2,000-staff Mouchel Consulting business including a possible disposal.

Mouchel Consulting provides engineering, environmental and asset management consultancy services, principally to infrastructure markets. For the financial year ended 30 June 2016, Mouchel Consulting reported revenue of £125m, generating an operating profit of £8m and a profit before tax of £5m. The gross assets of the company were £29m at 30 June 2016.

Mark Naysmith, managing director for WSP in the UK said: “We are pleased to join forces with Mouchel Consulting, which is recognised as a highly successful firm in the UK, with a particularly strong public sector presence in transportation. Our combined expertise across the public and private sectors will enhance our design capabilities, providing greater depth and diversity in related skill sets.

“This will position us as trusted advisors, enabling us to deliver our clients’ projects across the whole life cycle of their projects.Together, we will now be a top-tier player for local and national government transportation projects, as well as in local authority markets,” said Naysmith.

Kier say that the sale is expected to result in an immediate profit of approximately £40m, subject to post-completion adjustments. The net disposal proceeds will be retained by Kier for future investment purposes and to further reduce debt.

Haydn Mursell, chief executive of Kier, commented: “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.”