Kier has completed the acquisition of public services provider May Gurney and said it had been working closely with the company “to ensure an effective integration of the two businesses”.
Rival Costain bid £178m for May Gurney in March but this was trumped by a £221m bid from Kier.
Of the merger, Kier said in a statement: “We have been focusing on ensuring that the delivery of services to clients by the enlarged group remains unaffected, risk management processes are adopted consistently across the entire business and that the available operational efficiencies are realised in line with the integration plan.”
In April, Kier said the enlarged firm would have revenues of £2.8bn, drawn 41% from services, half from construction and 9% from property. Kier has 10,000 employees, May Gurney 6,000.
Kier Group chief executive Paul Sheffield said: “This gives us a services division that not only has a greater scale, but which has added significant highways maintenance experience, a broader utilities offering and a greater spread of environmental services.
“Our decision to acquire May Gurney represented a fundamental part of the group strategy to significantly grow and diversify our services business, not only giving us a greater critical mass in this sector but also a more complete offering to a wider range of customers. Now we are better placed in the market to deliver more to existing and new customers.
“Importantly, May Gurney and Kier share similar values which will go a long way towards the successful integration of both businesses.”
- In September 2012 May Gurney issued a profit warning, blaming loss-making kerbside sort collection contracts in Bristol and Chester. May Gurney’s local authority waste contracts are with: Barnet; Bath and North East Somerset; Bridgend; Bristol; Cheshire West and Chester; Essex; Gloucestershire; Hackney; North Yorkshire; Norfolk; North Somerset; Somerset; Torbay; Waltham Forest; West Oxfordshire; and Walsall.