Kier Group plc (LON:KIE), a leading infrastructure services, buildings and developments & housing group, announces that it has agreed terms for the disposal of KHSA Limited to Downer Group for a total consideration of up to AUS$43.7m (c.£24m), subject to an escrow arrangement. The consideration will be satisfied in cash on completion, which is expected to take place in early 2019.
KHSA, which was acquired as part of the Mouchel group of companies in 2015, provides road asset management and maintenance services in Australia in joint venture with Downer. For the financial year ended 30 June 2018, KHSA reported a profit before tax of £7.0m. The gross assets of the company were £52.1m at 30 June 2018.
The disposal is expected to result in a profit of c.£15m, subject to post-completion adjustments. The proceeds from the sale will be used to accelerate the reduction of Kier’s net debt.