Construction and infrastructure giant Kier said it would focus on “operational efficiencies” as it seeks to integrate service firm May Gurney following the completion of a £221 million acquisition.
The “delighted” group said it would continue to concentrate on integration in the months ahead, with particular attention on ensuring consistent service to clients and managing risk throughout the newly-enlarged company.
But bosses did not reveal how they expect to realise an anticipated £20m in annual cost savings across a combined firm with an order book of approaching £6 billion and a workforce of around 16,000.
Kier said it had been “very pleased” with the levels of support for the deal shown by shareholders at general meetings held to rubber-stamp the transaction.
“In anticipation of completion, we have been working closely with May Gurney to ensure an effective integration of the two businesses,” said the firm’s announcement to the markets yesterday.
“In particular, we have been focusing on ensuring that the delivery of services to clients by the enlarged group remains unaffected, risk-management processes are adopted consistently across the entire business, and that the available operational efficiencies are realised in line with the integration plan.
“Interaction with key clients has been very positive and we will continue this process in the coming months to ensure that the business meets their expectations, and to explore further business development opportunities.”
It is understood May Gurney has around 200 staff in Scotland, following its shedding of around 96 jobs at sites in Dundee, Falkirk and Aberdeen earlier this year.
Managers had blamed the scaling back of a contract with major client Scotia Gas Networks for the cuts.
May Gurney has had a presence in Dundee since 2011, when it bought over Turriff Group in a deal worth up to £23m.
Kier already has offices serving the Scottish market in Glasgow, Edinburgh, Aberdeen and Newcastle.
Last year it bought the construction arm of the Stewart Milne Group for £1m. That deal saw staff at Milne’s joinery workshop in Auchterarder remain on the firm’s books, after transferring to join the workforce of the plant’s new owners.
In sealing the deal for May Gurney, Kier had outbid an earlier offer by rival Costain by some 35%.
At the time, it said it expected the “consolidation of corporate and shared services functions and material procurement savings” would account for most of the annualised spending cut.
The group also praised the UK Government’s comprehensive spending review yesterday, saying the proposals for infrastructure and maintenance spending were “encouraging” for its construction and services businesses.
Kier said it had an “excellent platform for future growth”, with new deals including the Mersey Gateway scheme in north-west England, a string of housing service contracts and sales of development and PFI schemes.