Keller Buys Canada's Geo-Foundations Contractors
January 17, 2013
Keller Group plc announced this month the acquisition of Geo-Foundations Contractors Inc., a specialist geotechnical contractor based in Toronto.
Keller, an international firm specializing in ground engineering, paid about $9.3 million cash for the Canadian company, including taking on about $610,000 in net debt.
"Keller has worked in partnership with Geo-Foundations on a number of projects in recent years, building a relationship of mutual respect. I am confident that, together, we are well-positioned to fully exploit the opportunities in this attractive market,” said Keller CEO Justin Atkinson.
"This acquisition builds on our strong track record of expanding into higher growth geographic regions through both organic growth and targeted acquisitions."
Geo-Foundations mainly serves eastern Canada with design-build solutions for the construction and mining industries, specializing in micro-piling, ground anchors and specialty grouting. Keller in a release said these techniques, while in wide use in the United States, are relatively new to the Canadian market. Increasing acceptance of Geo-Foundations specialties, as well as ground improvement knowledge and assistance from Keller’s existing U.S. business, is expected to fuel growth over time.
Geo-Foundations has about $20.3 million in annual revenue.
Keller-a market leader in the U.S. and Australia-touts itself as the world’s largest ground engineering specialist offering foundation solutions to the construction industry. It has more than $2 billion in annual revenue and about 7,000 employees worldwide.