May Gurney buys Turriff for £13.6m

Grant Prior 13 years ago
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May Gurney has bought Scottish utilities contractor Turriff in a deal worth up to £13.6m.

May Gurney will pay £8.6m in cash up-front for Turriff with another £5m due over the next three years depending on performance.

The deal will see May Gurney taking on £9.4m of debt and key members of the Turriff management team will stay with the business alongside the firm’s 550 employees.

For the year to 31 December 2010, Turriff had earnings before interest, tax, depreciation and amortisation of £2.5m on revenues of £41m.

May Gurney believe benefits of the deal include strengthening its position in the utilities maintenance and support services markets in Scotland and gaining access to the UK gas marketplace.

Turriff’s order book is currently £90m with available extensions worth up to an additional £70m for key long-term clients including Scotia Gas, Scottish Water and Scottish & Southern Energy.

May Gurney also believes it will be able to make cost savings of £300,000 a year by combining the two businesses.

Chief Executive Philip Fellowes-Prynne said: “We are delighted to welcome Turriff to the May Gurney group, whose focus on developing long-term client relationships and reputation for assured operational delivery is so aligned to our own.

“This transaction meets with our strategy of developing wider services with existing clients and increasing our geographical spread.

“Turriff will provide access to the power and gas maintenance sectors, the Scottish support services market and consolidates our position in water.

“These are all key growth markets with dependable, sustainable income streams which will provide us with significant opportunities to develop long-term relationships with new clients.”

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