May Gurney to pay �13.6m for Scottish group
Norwich-based infrastructure support services company May Gurney has bought a Scottish group for more than �13m.
Aberdeen-based Turriff Group, one of Scotland's largest utility infrastructure maintenance companies, has more than 550 staff and turned over �41m in the year to the end of December 2010.
May Gurney said the purchase would strengthen its position in the utilities maintenance market and gains entry to the �2.4 billion support services market in Scotland, with opportunities in local government and rail.
It would also give May Gurney access to the UK's regulated �1.7bn gas marketplace, which it says is displaying strong and sustained growth with dependable, long-term income streams.
Turriff has an order book of approximately �90m, with available extensions worth up to an additional �70 million, said May Gurney.
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Clients include Scotia Gas, Scottish Water and Scottish & Southern Energy.
May Gurney chief executive Philip Fellowes-Prynne said: 'We are delighted to welcome Turriff to the May Gurney group, whose focus on developing long-term client relationships and reputation for assured operational delivery is so aligned to our own.
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'This transaction meets with our strategy of developing wider services with existing clients and increasing our geographical spread. Turriff will provide access to the power and gas maintenance sectors, the Scottish support services market and consolidates our position in water. These are all key growth markets with dependable, sustainable income streams which will provide us with significant opportunities to develop long-term relationships with new clients.'
May Gurney said there would be 'cost syneries' of about �0.3m per annum.
Under the terms of the transaction May Gurney will pay an initial cash consideration of up to �8.6 million, with a further �5 million payable over three years dependent upon a number of key performance indicators being met, including future revenue targets and key employee retention.
In addition, May Gurney is assuming approximately �9.4 million of debt.