Construction project and cost consultancy firm KMCS has been acquired by KPMG. The Big Four firm snapped up the Dublin based advisory brand for an undisclosed sum.
With construction activity often seen as a bellwether of economic health, news that it slowed in Ireland over the first quarter will have set alarm bells off. Figures from BNP Paribas Real Estate Ireland suggest that growth in construction activity fell in March from the previous month.
Activity remained above the firm’s threshold signalling the construction sector was still expanding, as housing and commercial activity rose last month, but that of civil engineering dropped for the first time in five months. This is something which experts suggest likely reflects the impact of soaring prices on demand – and may be indicative of the wider economy having to deal with high rates of inflation in 2022.
With this in mind, consulting firms which can help construction groups adapt to operating in these headwinds, are seeing demand spike. Founded in 1954, KMCS is one such advisory, which provides services in the areas of cost and project management in Ireland and overseas.
Clients include Facebook, Stripe, Primark, Westridge Real Estate, Riot Games and Fiserv. Attracted by the firm’s leading positioning in the market, as demand grows quickly, KPMG has sealed a deal to acquire the Irish construction project and cost consultancy firm.
Seamus Hand, Managing Partner of KPMG in Ireland, commented, “We believe that the acquisition of KMCS is a great opportunity, representing another component of our growth strategy. This transaction does just that by combining the deep expertise of the KMCS team with KPMG’s capabilities, experience and client base across a number of sectors.”
“As Ireland continues to attract high levels of foreign investment this is a timely acquisition which will facilitate investors when considering the allocation of capital investment in Ireland.”
KMCS’s staff of 35 will now fully integrate within the Big Four firm, relocating from Ballsbridge in Dublin, to KPMG’s offices at Stokes Place, Dublin, in the middle of the year. KMCS’ Managing Director, Nigel Spence will lead the new business unit.
Spence commented, “This is an incredibly exciting time for the KMCS team as we bring our business to the next level. Combining our deep skills and construction consulting expertise with the depth, reach and reputation of KPMG provides really exceptional opportunities for our combined business and our extended client base.”
The deal is KPMG’s first acquisition in years in the UK and Ireland, with the 2018 acquisition of Cyberinc the last notable purchase. In between, the firm sold off its restructuring arm for a reported £400 million.
Globally, KPMG has closed a number of deals in the first quarter of 2022, including three in Australia.
