Deal 鈥榚nhances presence in power, rail and telecoms markets鈥�, says contractor

Kier, which last month said it would be hit with a series of writedowns of at least 拢70m for 2017, has announced the acquisition of privately-owned contractor McNicholas Construction for an undisclosed sum, believed to be between 拢15m and 拢19m.

Hertfordshire-based McNicholas employs nearly 2,000 people and generated revenues of 拢180m last year, with profits before tax of 拢375,000. It works across a number of sectors, including gas, communications, rail, renewable energy and multi-utility.

Kier said the deal was 鈥渁 highly complementary addition to our utility services business and enhances our presence in the power, rail and telecoms markets鈥�. The firms are understood to have been discussing a possible deal for a number of months.

Together with the firm鈥檚 management team, McNicholas鈥� chief executive Barry McNicholas is staying with the business, Keir said.

Barry McNicholas said: 鈥淲e are excited by the opportunities that joining a larger group gives our teams to expand and grow. It also provides our clients access to a broader range of capabilities.鈥�

Last month Kier said it would be taking .

Kier鈥檚 move for the firm, sometimes known as Green Macs, means the two McNicholas names are now under larger owners. Skanska bought McNicholas plc, also known as Brown Macs, back in December 2006.

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