黑洞社区

Keltbray has sold its 拢400m turnover infrastructure business to international investor EMK Capital for an undisclosed sum.

The deal, plans for which were first reported by 黑洞社区 last month, is a major restructure for Keltbray which will see the firm offload its biggest division in order to put more focus on its 拢311m turnover construction business.

The infrastructure arm, Keltbray Infrastructure Services Limited (KISL), was established in 2018 and works on highways, rail and energy.

It was formed following the firm鈥檚 decision to diversify into infrastructure services in 2009 with the acquisition of Gamble Rail, followed by the purchase of Aspire Rail in 2010.

The building business will retain the Keltbray name and will be led by the firm鈥檚 owner and current executive chairman Brendan Kerr.

>> See also: Keltbray to sell off infrastructure business to concentrate on building arm

KISL鈥檚 order book has grown twelvefold since its establishment and now stands at some 拢1.1bn, with a headcount of more than 1,100 staff.

The business said EMK Capital would provide the financial backing and strategic guidance to further 鈥渁ccelerate the company鈥檚 ambitious growth plans鈥� including through further acquisitions.

KISL chief executive Darren James said: 鈥淓MK Capital鈥檚 deep understanding of the infrastructure and engineering services sector, coupled with its expertise in delivering transformational growth, will enable us to take meaningful steps towards geographic and service offering expansion, while maintaining our high-quality customer relationships and safety-driven employee culture.鈥�

James was brought in to Keltbray in spring 2020 after spending more than three decades at Costain, including a year as its chief operating officer.

In his first 18 months he tightened up its corporate governance and two years ago he told 黑洞社区: 鈥淚t鈥檚 not about going against Keltbray鈥檚 entrepreneurial spirit, it鈥檚 about having checks and balances and making it an integrated organisation.鈥�

Selling infrastructure will see Keltbray concentrate on ground engineering, demolition, sub and super structure work as well as construction plant.

The built environment business, which will continue to be based in Esher, Surrey, had an order book of 拢337m at its year end and employed just over 800 people.

In its last set of results, Keltbray, which was set up in 1976 with Kerr, who joined as a project manager in 1989 becoming the majority owner in 2003, posted a record turnover of 拢689m, a rise of 30% on last time.

Pre-tax profit fell from 拢3.4m to a 拢1.2m loss, which the firm said was down to the cost of a refinancing deal and legal fees associated with its appeal against the 拢16m fine imposed by the Competition and Markets Authority (CMA) for its involvement in the demolition sector鈥檚 bid-rigging scandal. The infrastructure business is unaffected by the CMA inquiry.