Keller acquires South African business16 October 2013
International ground engineering company, Keller, has announced that it has agreed to purchase the geotechnical division of the Johannesburg-listed civil engineering and construction company, Esorfranki, for an initial consideration of GBP 31M (USD 49.4M).
Esorfranki Geotechnical is the largest ground engineering business in South Africa, offering design and build services to the mining, civil engineering and construction industries.
In addition to adding a market-leading business run by an experienced management team who will remain with the business, the acquisition will accelerate Keller's entry into selected sub-Saharan construction markets. The business will form part of the Group's EMEA division, Keller announced.
The total consideration, to be paid in cash from Keller's existing facilities, will comprise an initial payment of GBP 31M (USD 49.4M), on a debt and cash free basis, together with a maximum deferred consideration of GBP 9.4M (USD 14.9M) dependent on the achievement of a certain level of profits over the three years following the acquisition.
Completion is expected by the end of November 2013 and is subject to approval by shareholders of Esorfranki at its general meeting on 18 November 2013 and the approval of the South African Reserve Bank.