Kier has sold its rump fleet and passenger services business, Kier FPS, to private equity investor Endless for £17.9m. The disposal includes the transfer of FPS' finance lease debt of £32m.
FPS provides specialist vehicle contract leasing and fleet management services to public sector clients and Kier's local authority highways and utilities businesses. It was part of the May Gurney business that Kier acquired in 2013 and has been up for sale from the outset.
In the year to 30th June 2015, FPS' estimated third party revenues and profit before interest and tax are £34m and £5.6m, respectively.
FPS will continue to supply Kier with fleet services to its local authority highways and utilities businesses.
Kier sold the plant division of FPS, which included more than 5,500 tools and machines, to GAP in July 2014.
Kier chief executive Haydn Mursell said: "FPS was acquired as part of the May Gurney transaction. However, in light of our strict return on capital requirements, we concluded that it would be appropriate to dispose of FPS to a specialist operator which will be managed by the existing management team."