May Gurney has boosted its Scottish business with the 拢13.6m acquisition of infrastructure maintenance specialist Turriff Group.

Under the terms of the deal, May Gurney will pay an initial cash sum of up to 拢8.6m, with a further 拢5m payable over three years, depending on whether future revenue targets are met and key employees are retained. In addition, May Gurney is taking on the firm鈥檚 拢9.4m of debt.

May Gurney said the deal brings a number of benefits as it:

  • Further strengthens its position in the utilities maintenance market and gains entry to the 拢2.4bn support services market in Scotland, with opportunities in local government and rail.
  • Gains access to the UK鈥檚 regulated 拢1.7 billion gas marketplace which is displaying strong and sustained growth with dependable, long-term income streams.
  • Gains Turriff鈥檚 acquired order book, which is worth approximately 拢90m, with available extensions worth up to an additional 拢70 million. Its key long-term clients include Scotia Gas, Scottish Water and Scottish & Southern Energy.
  • The transaction is expected to be earnings accretive in the first full year of acquisition.
  • Potential to achieve cost synergies of circa 拢0.3 million per annum.

Headquartered in Aberdeen, Turriff has more than 550 employees and is one of Scotland鈥檚 largest utility infrastructure maintenance companies with market-leading positions in gas, water, electricity and multi-utility services.

For the year to 31 December 2010, based on unaudited management accounts, Turriff had earnings before interest, tax, depreciation and amortisation of 拢2.5m on revenues of 拢41m.

Commenting on the deal, May Gurney chief executive Philip Fellowes-Prynne said: 鈥淲e are delighted to welcome Turriff to the May Gurney group, whose focus on developing long-term client relationships and reputation for assured operational delivery is so aligned to our own. news

鈥淭his transaction meets with our strategy of developing wider services with existing clients and increasing our geographical spread. Turriff will provide access to the power and gas maintenance sectors, the Scottish support services market and consolidates our position in water. These are all key growth markets with dependable, sustainable income streams which will provide us with significant opportunities to develop long-term relationships with new clients.鈥�

 

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