May Gurney acquires AC Chesters

May Gurney has acquired the Staffordshire based mechanical and electrical engineering specialists, AC Chesters & Son Ltd (AC Chesters). The move further enhances May Gurney's expertise in the water utilities sector and its prospects for the next regulatory review period (AMP 5).

The total consideration for the share capital of AC Chesters will comprise £5.15 million.

In the financial year ended 31 March 2006, AC Chesters generated profits before tax of £0.5 million on revenues of £4.1 million. At the time of completion, AC Chesters had net assets of £2.3 million which May Gurney will acquire, including cash on the balance sheet of £1.5 million.

The water utilities sector is one of May Gurney's core markets. The company provides a range of network maintenance and enhancement services to many of the major UK water companies including South West Water, Severn Trent Water, Essex & Suffolk Water, Scottish Water, Anglian Water, United Utilities and Thames Water. The acquisition of AC Chesters deepens May Gurney's offering in water utilities mechanical and electrical services, complementing its exisiting business relationships.

David Sterry, Chief Executive of May Gurney, said: "We are delighted to welcome a company whose long-term customer-focused approach is aligned to ours.

"This acquisition meets with our strategy for building the business. It complements our strong and established presence in the water utilities sector and positions us well in advance of the next regulatory review period."

Nick Chesters, Director of AC Chesters, said: 'The combined skills and resources of a larger business enable us to play a more significant role in helping our customers to deliver their investment programmes over the coming years and exploiting this growth market. My team is really looking forward to becoming an integral part of May Gurney.'

The experienced AC Chesters management team will remain in place, headed up by Nick Chesters. The company will be fully integrated into May Gurney over the coming months, including the rebranding of the business.

A C Chesters was founded by Alan and Joan Chesters in 1973. The company carries out a full range of mechanical and electrical engineering services, primarily within the water and sewage sector, and was named 'Severn Trent Minor Works Contractor of the Year' in 2001, 2002 and 2004. AC Chesters is one of 19 framework contractors working for Severn Trent Water on the delivery of its £2.2bn AMP4 spend.