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Endless acquires Kier Group’s FPS division

By / 9 years ago / Latest News / No Comments

The newly formed company will now trade as Essential Fleet Services (‘Essential’) and it has entered into a new five year agreement to provide Kier with fleet services to its local authority highways and utilities businesses.

Kier said the disposal included the transfer of FPS' finance lease debt of approximately £32m.

The MBO was led by managing director Ray O'Toole and operations director David Liston.

Mathew Deering, partner at Endless, said: "As soon as we became aware that Essential was non-core to its parent's strategy, we knew we wanted to back Ray, David and the team in the transition to an independent business.

"We are delighted to have partnered with Kier to become the new owners of a strong and well-invested business with an attractive long-term growth plan, and we look forward to working with Kier as a valued customer to Essential moving forward."

FPS became part of Kier as a result of the May Gurney acquisition in 2013 and, since then, has been under review.

Haydn Mursell, Kier's chief executive, said: "FPS was acquired as part of the May Gurney transaction. However, in light of our strict return on capital requirements, we concluded that it would be appropriate to dispose of FPS to a specialist operator which will be managed by the existing management team." 

In the year to 30 June 2014, FPS reported third party revenues of £36m, a profit before interest and tax of £4m, and had gross assets of £55m.

Kier and FPS have entered into a five-year agreement under which FPS will continue to supply Kier with fleet services to its local authority highways and utilities businesses.

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