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Morrisroe tipped to buy Cementation Skanska

Morrisroe is in talks to buy Cementation Skanska, sources have told Construction News.

There has been speculation that a deal between the two was imminent and CN has learned that NDAs have now been signed by executives at the two businesses.

In a statement released to CN, Skanska confirmed that the “sale process is progressing, but nothing has yet been signed”, adding that the firm would only comment on “signed contracts and not on speculation”.

Skanska UK announced in May that it planned to sell its piling and foundations business.

The firm said the move was part of a “comprehensive restructure” across Skanska’s global business.

Cementation Skanska is one of the UK’s biggest piling specialists.

It employed 383 UK staff and posted a pre-tax profit of £4.8m on turnover of £87.8m, according to its last available accounts for the year to 31 December 2016.

The division has completed a number of high-profile schemes for Skanska and other contractors, including Crossrail, the Gherkin and Heron Tower.

Morrisroe chief executive Brian Morrisroe told CN in July the firm was eyeing acquisitions to expand its business after it reported an “excellent” year in 2017.

Turnover at the specialist increased to £214.4m for the year to 31 October 2017, up 32 per cent from £162.4m in the previous 12 months, while pre-tax profit rose from £14.3m to £16.2m.

The firm’s cash reserves also more than doubled from £33.3m to £68.2m as of the end of October.

“We will look at opportunities where we can strengthen the overall business by adding on things that will fit in quite well,” Mr Morrisroe told CN in July.

The sale of Cementation Skanska is just one part of a global restructure of Skanska’s business.

The restructure was announced in January following weak performance across several construction units in Europe, as well as a slowdown in European infrastructure development.

Skanska UK business has also been impacted by the changes, which saw a number of redundancies in March.

Morrisroe has been contacted for comment.

The CN Specialists Index 2018 will be released next week with a launch event taking place in London. 

Readers' comments (1)

  • If the Morrisroe Group has so much spare cash, why can't AJ Morrisroe & Sons Ltd comply with the requirements of the Prompt Payments Code which they have signed up to.
    Under the PPC they must commit to paying 95% of their invoices within 60 days.
    Their latest Payment Practice Report for the period 01/05/18 - 31/10/18 shows that 20% of invoices were paid in more than 61 days.

    Unsuitable or offensive? Report this comment

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