Aberdeen-based Stewart Milne Group (SMG) has completed the sale of its construction division to Kier Group in a £1 million deal.
The new business is to be named Kier Milne and will see 20 people transferring over.
Operations will be run as part of Kier’s regional UK network from Aberdeen, with present managing director of Stewart Milne Construction, Bill Imlach, at the helm.
The news comes amid the faltering construction industry contributing significantly to the UK’s return to recession. However, hopes are high that the venture will be a success, with SMG having on-going contracts to the value of £15 million and further potential work in the future estimated at £20 million.
In 2011, the company filed accounts showing a turnover of £57.2 million for the year ending 30th June.
Talking about the deal Paul Sheffield, Kier’s chief executive, said:
“I am delighted this acquisition has concluded successfully and welcome the Stewart Milne team to Kier.”
Echoing the sentiments Glenn Allison, SMG managing director, said:
“We are pleased we have successfully concluded this deal with Kier which will offer both companies investment and growth opportunities.”
Lack of securing investment has been a major factor in the construction industry’s decline in the downturn. However, some companies are managing to sustain themselves through such strategies as invoice factoring.
Scottish invoice discounting is also helping others, with many even able to move forward through acquisition as competitors struggle with the climate.
The completion of the deal is likely to see growth in Aberdeen, whilst the already successful timber-frame operations that SMG Construction provides are likely to expand nationwide.