Kier has announced its intention to sell Mouchel, just over a year after acquiring the consultant in a deal worth £265M.

 

In a statement on Monday the Kier Group said that simplification of its portfolio “is a priority” as it looks to focus on its core markets of infrastructure, building and housing.

 

The possible sale of Mouchel follows a review of operations which Kier feels “do not meet the Group’s strict financial hurdles and/or do not provide a long term strategic fit with the Group’s core businesses”.

 

Kier did add that “the Mouchel business is performing well” with earnings for the financial year of £8M and net assets of £25M. It is expected that a profit would be realised on completion of any disposal, Kier said in its trading update.

 

Mouchel was ranked number 13 by Transportation Professional’s 2016 Consultants Directory in terms of turnover in the UK (£160M) and number two in terms of roads (£95M). But the consultant’s fortunes have dipped significantly since last year, where turnover was £527M and roads turnover was £212M.

 

A highways insider said of Kier’s possible sale of Mouchel: “The synergy between a contractor and a consultant can be a challenge. For an acquisition to be a success there must be a deep understanding of the culture of the business you are buying.”