Keller Group, the international ground engineering specialist, has entered into an agreement to purchase Resource Holdings Limited, a Singapore-based foundation contractor, for an initial cash payment of £30.6 million, including an estimated £2 million of acquired net debt, plus further payments based on future profits.

Resource is a specialist foundation contractor with particular expertise in large diameter bored piling in soft clays.

With over 20 years' experience, Resource has an excellent reputation locally and has worked on some of Singapore's most prestigious projects in both the public and private sectors. The senior management of Resource is remaining with the business.

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This acquisition will add critical mass to, and significantly strengthen, the Group's existing operations in Singapore. By extending its product range, it will enable the Group to offer packaged solutions which combine Keller's existing ground improvement techniques with Resource's piling products. Over the medium term, the acquisition will also assist Keller in growing its heavy foundations capability in South East Asia.

Justin Atkinson, Chief Executive of Keller, said: "We are excited by this important acquisition, which will significantly increase the size of the Group's operations in South East Asia and add further momentum to our move into heavy foundations in these attractive growth markets."

Completion is expected by the end of October.

(CD/GK)