Keller Group Buys Waterfront Services For Up To GBP27.8M

10th Jun 2010 08:12

LONDON (Dow Jones)--Keller Group PLC (KLR.LN), the international ground engineering specialist, said Thursday it has acquired privately-owned Waterfront Services Pty Limited, a Sydney-based near-shore marine foundation contractor trading as Waterway Constructions for up to GBP27.8 million. MAIN FACTS: -Consideration, to be paid in cash from the Group's existing facilities, will comprise an initial payment of A$37 million (GBP21 million), including an estimated A$7 million (GBP4 million) of acquired net cash, together with a maximum deferred consideration of A$12 million (GBP6.8 million), based on future profits in the three years to June 30, 2013. -Waterway specializes in the construction of foundations for wharves, jetties and other marine structures and the maintenance and extension of existing structures. -Waterway will maintain a strong presence in New South Wales whilst looking to increase its penetration of the Queensland and Victoria markets. -In the medium term, there are good prospects for expansion into Western Australia, where planned minerals and energy projects are expected to generate strong demand for both land and near-shore marine based foundation services. -In the year ending June 30, Waterway is expected to report an operating profit of around A$7 million (GBP4 million) on revenue of about A$55.0 million (GBP31 million); Going forward Keller expects the operating margin to ease back to its historic level of around 10%. Gross assets at Dec. 31, 2009 were A$37 million (GBP21 million). -Shares at 0710 GMT up 0.5 pence, or 0.1%, at 584 pence valuing the company at GBP375.53 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires June 10, 2010 03:12 ET (07:12 GMT)