THE company which runs several Bournemouth council departments is being bought by the Kier Group for £265m.

Construction and property company Kier announced its intention this morning to acquire Mouchel and all its subsidiaries.

Bournemouth council says it has received assurances from Kier about its commitment to Bournemouth.

Mouchel runs the council’s human resources, accounting, facilities management, IT and revenues and benefits functions from the Town Hall.

A statement from Bournemouth Borough Council chief executive Tony Williams said it was “very much business as usual” after the announcement.

“It has been public knowledge for some months that Kier Group was in discussions with Mouchel,” he said.

“We’ve had an extremely positive meeting with representatives of both Mouchel and Kier and have received assurances from Kier regarding their commitment to Bournemouth.

“I would like to reassure residents, staff and members that robust contractual clauses are in place in relation to any potential change in Mouchel’s ownership, that safeguard the council’s position both financially and in terms of service provision.”

Mouchel was given a target in 2010 of saving the council £29million over 10 years. The council says it has delivered more than £10m of savings in the first four years and has improved services.

It says the revenues and benefits department is processing residents’ claims faster and in greater volume. It says the partnership has created nearly 160 jobs in Bournemouth.

Council leader Cllr John Beesley said: “This is all about value for money and continued improvement in services.”

He said Kier was a diverse company that recognised the potential of Bournemouth.

“Bournemouth is on the agenda for lots of PLCs and Kier is one of them,” he added.

Grant Rumbles, Mouchel’s Chief Executive, said: “Kier and Mouchel are an excellent fit. The enlarged company will enable us to improve our offer to customers and to enhance the career opportunities of our employees.”

“This deal is testimony to the successful turnaround of Mouchel following its 2012 restructuring. Refocusing the business on its core strengths and targeting profitable growth has brought us to a position where our order book is now more than £2.8bn. For that I thank my excellent management team and all of our staff for their hard work and determination over the last few years.”

“I will remain in the business until the transaction completes. Although I will be sad to be going, I am pleased to be leaving the business in such great hands.”

Haydn Mursell, the CEO of Kier, will be CEO of the expanded group.