Ground engineering firm says acquisition will help long-term expanision in South East Asia

Ground engineering firm Keller has agreed to buy Singaporean contractor Resource Holdings for an initial cash sum of 拢30.6m.

Keller said the acquisition of the specialist foundation contractor would 鈥渟ignificantly strengthen鈥� its operations in Singapore and help long-term expansion in South East Asia.

Resource specialises in large diameter bored piling in soft clays. In the year to 31 March, it reported an operating profit of 拢10.7m on turnover of 拢52m but Keller said it did not expect this level of profitability to continue in the short to medium term due to the impact of the recession on Singapore鈥檚 growth rate.

In addition to the 拢68m up front payment, the deal includes further payments of up to 拢22.4m based on future profits. Completion is expected by the end of October.

Keller chief executive, Justin Atkinson, said: 鈥淲e are excited by this important acquisition, which will significantly increase the size of the group's operations in South East Asia and add further momentum to our move into heavy foundations in these attractive growth markets.鈥�

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