Keller has paid an initial £17m for the US company plus an expected earn-out of £11m relating to future contract wins
Recon Remedial Construction Services is a specialist geotechnical environmental remediation and industrial services contractor mainly focused on the petrochemical sector on the Gulf and East coasts of the United States. Its geotechnical work is focused mainly on the environmental remediation and solidification of soils, while its industrial services activities support the needs of the power, mining and manufacturing industries.
Keller said that Recon was similar to its existing Florida-based Moretrench Industrial business in its focus on environmental remediation. It expects revenue synergies from cross selling opportunities between the two businesses and also with the Keller Foundations businesses. Recon will report to John Carpenter, president of Moretrench Industrial, and be integrated into Keller’s North America Division.
Recon was previously private equity owned. The vendor is Oaktree Capital Management. Pre-Covid, Recon averaged US$150m annual revenue, but this dipped to $87m last year,
resulting in an operating loss of $1.6m.
Keller chief executive Michael Speakman said: “I am excited by the acquisition of Recon, and by the contribution Recon will make to Keller in the future.Recon’s excellent safety record and strong customer service ethos are very similar to those of Moretrench Industrial, and together they significantly broaden our capability in the growing environmental services sector. This timely acquisition is strategically aligned 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 integrated into the Keller Group.”