The firm aims to use the deal as a springboard to create a national housing maintenance and estates management business to secure a substantial pipeline of work.
Lovell managing director Stewart Davenport said: “Powerminster’s expertise in long term PFI estates and facilities management complements Lovell Respond’s strength in day-to-day maintenance services.”
“With social housing contracts increasingly being tendered on a combined ‘planned and response maintenance’ basis, the expanded business will create a seamless ‘one stop shop’, offering clients the full range of maintenance services alongside our expertise in new-build and refurbishment.”
He added: “We are strongly placed for opportunities offered by the latest round of housing PFI schemes as well as having capacity for working on PFIs in other sectors.”
All Powerminster’s contracts along with the 178-strong workforce will transfer to Lovell’s response maintenance business.
Powerminster delivers planned and reactive maintenance solutions, including a 24/7 responsive service, to the social housing sector on top of long-term estate management services on PFI schemes.
It brings a substantial pipeline of work to Lovell. Its PFI contracts include a £48m, 28-year facilities management contract for Leeds City Council’s Leeds Independent Living Project programme and a £29m, 31-year contract to provide facilities management services for five extra care housing schemes in Cheshire.
The firm also has a £35m, 30-year contract for estates management services at the Stanhope estate in Ashford, Kent and a £32m, 30-year estates management contract for the Grove Village estate regeneration in Manchester.
Lovell Respond’s current business is mainly focused on the Midlands, while Powerminster operates in the North West, North East and South East of England.
Lovell’s expertise lays in reactive and programmed maintenance contracts including day-to-day responsive repairs, refurbishment of void properties, programmed maintenance and electrical and gas installations servicing and repair.
Recent wins include a £30m, five-year housing repairs and maintenance contract for Gloucester City Homes, which manages Gloucester City Council’s 5,000 homes.