Managing director Ray O’Toole and operations director David Liston led the MBO of the £43m turnover company, which will now trade as Essential Fleet Services.

Lincoln-headquartered Kier FPS is a provider of specialist vehicle contract leasing and fleet management services to public sector clients and Kier’s local authority highways and utilities businesses.

It became part of Kier as a result of the May Gurney acquisition in 2013 and, since that time, has been under review in light of Kier’s disciplined approach to capital allocation and its strict return on capital criteria.

The sale includes the transfer of FPS’ finance lease debt of £32m.

Last year Kier sold its specialist construction plant and equipment fleet run by FPS to hirer GAP.

Haydn Mursell, Kier’s Chief Executive, said: “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.”