Kier Group sells Aussie road maintenance division KHSA in £24m deal

Infrastructure services, buildings and developments company Kier Group has agreed terms for the disposal of KHSA to Downer Group for a total consideration of up to AUD 43.7m (£24m), subject to an escrow arrangement.

The FTSE 250 firm said the consideration would be satisfied in cash on completion, which was 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,” Kier Group explained in its statement.

“For the financial year ended 30 June, KHSA reported a profit before tax of £7.0m.

“The gross assets of the company were £52.1m at 30 June.”

Kier said the disposal was expected to result in a profit of around £15m, subject to post-completion adjustments.

It said the proceeds from the sale would be used to accelerate the reduction of Kier's net debt.