REG - Keller Group PLC - RECON contract award

KellerAnnouncement

13/12/2021 07:00

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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 (£120m) 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 (£17m), and an expected
earn-out of US$15m (£11m) 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 (https://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                                        020 3727 1340

 Nick Hasell / Matthew O'Keeffe

 

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 £2bn.

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 Inside
information.

 

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