After economic troubles, Buckingham Group’s rail assets will be absorbed by Kier’s Transportation business
After Buckingham Group went into administration, its rail assets will become part of Kier’s Transportation business, expanding Kier’s profile across the UK rail market.
Kier’s Transportation business designs, builds and maintains infrastructure across the highways, rail, aviation and ports sectors.
The purchase cost Kier £9.6m and saved 180 jobs
Joe Incutti, Group managing director at Kier Transportation, said: “The Buckingham Group rail business had built a very strong reputation for assured delivery in the rail sector. I am pleased that we now welcome 180 new colleagues into Kier Transportation.
“The team will further strengthen our capability and this helps to bring an end to a period of uncertainty for former Buckingham Group clients and employees by ensuring continued delivery on existing projects, and the retention of hugely important skills and expertise in the rail sector.”
Rail assets such as Buckingham’s HS2 contract supplying Kier’s HS2 joint venture, EKFB, were preserved.
The sale comes a month after Buckingham Group first announced it was seeking a buyer
The employee-owned firm filed for administration last month. In a statement they blamed the difficulties on “deep losses and interim cash deficits incurred on the three major Stadium and Arena contracts, and a substantial earthworks contract in Coventry.”
An estimated 450 jobs relating to these contracts have been lost.
Mike Kempley, chairman at Buckingham Group Contracting, said ‘’After 36 years of uninterrupted trading, this is an extremely sad day for all the exceptionally committed and talented people who have made Buckingham Group Contracting the business it is.
“In moving to Kier, we are sure our Rail & HS2 teams are in good hands and will continue to deliver an excellent service.”
The expansion is part of Kier’s new rail strategy
Andrew Davies, chief executive at Kier Group, said: “We have previously stated that we would consider value accretive acquisitions in core markets where there is potential to accelerate the medium-term value creation plan. This acquisition is one such example – it is an excellent strategic fit and accelerates our rail strategy, providing work with new rail clients and increasing our capabilities. I am delighted to welcome our new employees, clients and suppliers to Kier.”
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