Kier has completed its acquisition of Mouchel for £265 million.
The new and larger group is responsible for maintaining one third of the UK’s strategic road network and is the top-rated supplier to Highways England. Kier’s remit covers some 500,000 street lights and signs and 25,000 miles of roads.
Haydn Mursell, chief executive of Kier, said: “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.”
The acquisition positions Kier to benefit from the new Road Investment Strategy (RIS) which sets out a long-term investment plan of £17 billion of total expenditure on the maintenance, renewal and enhancement of the strategic road network from 2015 to 2020, with annual expenditure increasing from £2.9 bn to £4.1bn over the same period.