British construction company Kier Group has announced the full acquisition of Buckingham Group’s rail assets after it entered administration.
On September 4, 2023, Buckingham Group officially entered into administration due to recent cash flow pressures and subsequent losses incurred by the business, which activated the distribution of its assets.
Buckingham Group will become a division of Kier Transportation, which develops, constructs and maintains infrastructure for roads, rail, aviation and ports.
As previously reported by Building, Kier rescued 180 jobs when it agreed to pay £9.6m ($12m) for the firm’s £150m-plus rail division, which includes work for Network Rail and Buckingham’s HS2 contract.
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By GlobalDataKier Group chief executive Andrew Davies emphasises how this acquisition has allowed the company to access core markets: “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.
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“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.”
According to a formal statement from the Buckingham Group, the company tried to deliver a refinancing and secure the business cash flows however, due to ongoing losses, its downfall was inevitable.
Kier Transportation group managing director Joe Incutti said: The Buckingham Group Contracting 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 clients and employees by ensuring continued delivery on existing projects and the retention of hugely important skills and expertise in the rail sector.”
