Keller Group acquires Australian construction firm

Keller Group has acquired Austral Construction in a deal worth £30.3m, the company said Thursday.

Under the deal, Keller will pay £20.5m in cash for the Australian firm and make deferred payments of up to £9.8m dependent on Austral’s earnings in the three years up to June 2018.

Austral, which had gross assets of £16.49m, provides piling and civil construction services in the infrastructure and mining sectors and is based in Melbourne.

Investec reiterated its ‘buy’ rating and target price of 1420p, and said it remained confident in the group’s outlook.

“The deal will be immediately earnings enhancing and help strengthen its existing presence in the near-shore marine work market in Australia,” analyst Andrew Gibb said in a note to clients.

Shares in Keller rose 0.96% to 1,047p at 1142 BST on Thursday.