RECON is a specialist geotechnical environmental remediation and industrial services contractor working principally for industrial clients, many in the petrochemical sector, predominantly along the Gulf and East coasts of the US. Its geotechnical work is focused mainly on the environmental remediation and solidification of soils, while its industrial services activities support the specialised needs of the power, mining and manufacturing industries.
The acquisition of RECON is in line with Keller's strategy to be the preferred international geotechnical specialist contractor focused on sustainable markets and attractive projects. Similar to Keller's existing Florida-based Moretrench Industrial business, RECON is focused on environmental remediation activities and the geographic proximity of the two businesses will provide revenue synergies from cross-selling opportunities, both between the two businesses and also the Keller Foundations businesses and some, primarily volume-based, cost synergies. The additional revenue synergies provide the opportunity to increase the Group's overall market share in the important Gulf Coast area where Keller has historically been relatively under-represented. RECON will report to John Carpenter, president of Moretrench Industrial, and be integrated into Keller's North America Division.
RECON has been acquired from funds managed by Oaktree Capital Management, L.P. for an initial cash consideration of US$23 million, on a cash and debt-free basis, plus an earn-out consideration relating to certain future contract wins up to 31 December 2022, which is currently estimated to be around US$15 million, payable at the time of project mobilisation.
Michael Speakman, chief executive of Keller, said: "I am excited by the acquisition of RECON and by the contribution RECON will make to Keller in the future.
"RECON's excellent safety record and strong customer service ethos are very similar to those of Moretrench Industrial, and together they significantly broaden our capability in the growing environmental services sector.
"This timely acquisition is strategically aligned to our objective of increasing Keller's market presence in our chosen local markets, and leveraging the synergy opportunities available as a consequence of being integrated into the Keller Group."
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