Business Weekly - Cambridge, UK

HOME Archive Property and Construction Archive May Gurney makes gas acquisition

May Gurney makes gas acquisition

Friday, 02 November 2007

Norwich construction and support services company May Gurney has strengthened its strategic position in the gas market with a £14.6m acquisition – its third this year. May Gurney announced that it had paid an initial £4.6m in cash for Willows Plant Limited, a gas utility maintenance contractor based in the North West, with a further £10m to follow, dependent on Willows securing substantial further work above its current turnover levels. The company said that its acquisition of Willows, which works mainly on long-term maintenance contracts for the National Grid, would strengthen its strategic position in the gas market as the industry prepares for the next round of long-term gas maintenance contracts. Its core market of utilities maintenance represented aro-und 30 per cent of its annual revenues, May Gurney said. It added that the purchase would complement its existing gas maintenance business with National Grid. Willows posted pre-tax profits of £600k for the year to March, on the back of £19.1m in revenues. “I am delighted to welcome the Willows team into May Gurney,” said CEO, David Sterry.  “The combined skills of the two businesses will give us an excellent opportunity to secure a long-term and substantial position in the gas maintenance market.”

 

Next >