Keller Group PLC RECON contract award (3385V)
13 Dezember 2021 - 7:59AM
UK Regulatory
TIDMKLR
RNS Number : 3385V
Keller Group PLC
13 December 2021
13 December 2021
Keller Group plc
RECON contract award
Keller Group plc ('Keller' or 'the Group'), the world's largest
geotechnical specialist contractor, announces that its subsidiary
RECON Services, Inc (RECON) has been awarded a contract worth
approximately US$160m (GBP120m) in revenue over a two year period,
in connection with the development of an energy facility in the
Gulf Coast region of the USA.
In July 2021, Keller acquired RECON, a specialist geotechnical
environmental remediation and industrial services company
headquartered in Houston, Texas, USA, for an initial cash
consideration of US$23m (GBP17m), and an expected earn-out of
US$15m (GBP11m) relating to certain future contract wins.
The contract is expected to mobilise in 2022 and conclude in
2023 and comprises ground preparation, primarily through soil
stabilisation, for the construction of an energy facility. The
project is similar to work that RECON has performed at other energy
facilities in the region.
Once this project initially mobilises to site, a significant
proportion of the additional acquisition consideration will become
payable by Keller, in accordance with the earn-out provisions of
the sale and purchase agreement for RECON.
This project is a notable win for RECON and the Group and we
believe there is significant potential for further similar projects
in the USA especially along the Gulf Coast region. As well as the
specialist geotechnical environmental remediation and industrial
services provided by RECON, future projects will also potentially
benefit from cross selling opportunities with Keller Foundations
business and Keller's Florida based Moretrench Industrial business
that, like RECON, focuses on environmental remediation
activities.
Michael Speakman, Keller Chief Executive, commented :
"I am delighted to announce the first substantial contract award
for RECON following our acquisition of the company in July. This
contract award reflects RECON's and Keller's excellent track record
using soil stabilisation and Keller's extensive experience in
similar energy construction projects around the world. The addition
of RECON to the Group strategically aligns to our objective of
increasing Keller's market presence in our chosen local markets,
and leveraging the synergy opportunities available as a consequence
of being part of the Keller Group".
For further information, please contact:
Keller Group plc www.keller.com
020 7616 7575
Michael Speakman, Chief Executive
Officer
David Burke, Chief Financial Officer
Caroline Crampton, Group Head of
Investor Relations
FTI Consulting
Nick Hasell / Matthew O'Keeffe 020 3727 1340
Notes to editors:
Keller is the world's largest geotechnical specialist contractor
providing a wide portfolio of advanced foundation and ground
improvement techniques used across the entire construction sector.
With around 9,000 staff and operations across five continents,
Keller tackles an unrivalled 6,000 projects every year, generating
annual revenue of more than GBP2bn.
RECON is a specialist geotechnical environmental remediation and
industrial services contractor working principally for industrial
clients, many in the petrochemical sector, predominantly along the
Gulf and East coasts of the United States. Its geotechnical work is
focused mainly on the environmental remediation and solidification
of soils, whilst its industrial services activities support the
specialised needs of the power, mining and manufacturing
industries. RECON was acquired by Keller on 14 July 2021.
Cautionary statements:
This document contains certain 'forward looking statements' with
respect to Keller's financial condition, results of operations and
business and certain of Keller's plans and objectives with respect
to these items. Forward looking statements are sometimes, but not
always, identified by their use of a date in the future or such
words as 'anticipates', 'aims', 'due', 'could', 'may', 'should',
'expects', 'believes', 'intends', 'plans', 'potential', 'reasonably
possible', 'targets', 'goal' or 'estimates'. By their very nature
forward-looking statements are inherently unpredictable,
speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied
by these forward-looking statements. These factors include, but are
not limited to, changes in the economies and markets in which the
group operates; changes in the regulatory and competition
frameworks in which the group operates; the impact of legal or
other proceedings against or which affect the group; and changes in
interest and exchange rates. For a more detailed description of
these risks, uncertainties and other factors, please see the Risk
Management approach and Principal Risks section of the Strategic
Report in the Annual Report and Accounts. All written or verbal
forward looking statements, made in this document or made
subsequently, which are attributable to Keller or any other member
of the group or persons acting on their behalf are expressly
qualified in their entirety by the factors referred to above.
Keller does not intend to update these forward looking statements.
Nothing in this document should be regarded as a profits forecast.
This document is not an offer to sell, exchange or transfer any
securities of Keller Group plc or any of its subsidiaries and is
not soliciting an offer to purchase, exchange or transfer such
securities in any jurisdiction. Securities may not be offered, sold
or transferred in the United States absent registration or an
applicable exemption from the registration requirements of the US
Securities Act of 1933 (as amended).
LEI: 549300QO4MBL43UHSN10. Announcement classification: 2.2
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