Mott MacDonald swoops for Mouchel energy arm
Mott MacDonald has bought Mouchel Energy for an initial £2.55 million, a sum that could rise to almost £3.5m.
Mouchel Energy is based in Hinckley, Leicestershire, and provides engineering design consultancy to the gas and wider energy sector. Proceeds from its sale will be used to repay company debt.
Formerly known as Gas Experts, the company joined Mouchel in 2003. It has 50 full-time staff and has long-standing clients including National Grid, for whom it provides maintenance and upgrading of the UK national gas transmission network.
Mott MacDonald chairman Keith Howells said: “Mouchel’s gas pipeline team shares our culture of professional excellence, innovation and environmental sustainability.
“This acquisition means we will be able to offer clients an enhanced suite of capabilities embracing all areas of the energy sector and all facets of project development.”
For the year ended 31 July 2010, the pipeline design business reported a post-exceptional profit before tax of £0.09m on net revenue of £4.7m. At 31 January 2011 its gross assets were £2.3m.
Mouchel chief executive Grant Rumbles said: “The sale is another key step in our strategy to focus on Mouchel’s leading positions in core markets. We wish the business and its employees every success for the future.”
The business is led by Colin Brewster, who will remain in his post under the new ownership.
Mott MacDonald paid initial consideration of approximately £2.55m in cash, but the transaction is also subject to post-completion adjustments for which additional cash consideration payable to Mouchel under such adjustments is capped in aggregate at approximately £0.85m.
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