Morgan Sindall pays £28m for Connaught contracts

Grant Prior 14 years ago
Share

Morgan Sindall’s affordable homes division Lovell has bought the majority of Connaught’s ongoing contracts in a £28m deal which will see 2,500 staff transfer to the company.

The sale was thrashed-out with administrator KPMG yesterday and Morgan Sindall expects the Connaught contracts to provide £200m of new revenue split broadly between response maintenance contracts and Decent Homes, planned maintenance work.

Morgan Sindall chief executive John Morgan, said: “This is a step change for Lovell. The acquisition significantly increases the scope and scale of our planned and reactive maintenance activities and further develops our market leading position.

“Our focus now will be to ensure a smooth handover of the contracts and to minimise disruption to essential maintenance services.

“We look forward to working with our new and existing clients and to provide them with a high level of service, as well as protecting jobs on the contracts we are acquiring.

“Through the experience built up at Lovell over many years, we are happy with the terms on which we are acquiring these contracts. The Board believes that this acquisition represents excellent value for our shareholders.”

In the year to 31 December 2009, Lovell reported an operating profit of £14.9m on revenue of £374m. On 30 June 2010, the Group announced the strategic acquisition of Powerminster Gleeson Services to extend the division’s response maintenance capability and geographic reach.

The Connaught Partnerships division employed 4,400 people when it was placed in the hands of KPMG earlier this week.

The administrators are currently working to sell the remaining contracts to rival firms or councils who may want to take them back in house.

Richard Heis, restructuring partner at KPMG and joint administrator, said: “It has been a considerable achievement to agree such a substantial transaction in such a short amount of time after our appointment, which reflects the commitment of Morgan Sindall and the efforts of Connaught Partnerships’ management and staff to secure the deal.

“We are continuing to seek to novate the remaining contracts to other providers and remain hopeful that more staff will transfer as part of this process.”

The City gave the deal the thumbs-up with Morgan Sindall’s share price rising by 10% in early trading.


Latest news

Morgan Sindall bags £60m raft of NHS projects

Mid and South Essex NHS Trust plans six projects
10 hours ago

Peri buys shoring and temporary bridge specialist Mabey Hire

Scaffolding and formwork specialist expands offer
14 hours ago

Vinci/McAlpine go-ahead for £312m Midlands hospitals revamp

Shrewsbury and Telford Hospital NHS Trust gets full business case approval
17 hours ago

Lendlease puts construction arm up for sale

After two decades of global expansion Lendlease retreats to Australia
1 day ago

Mount Anvil seals Isle of Dogs estate rebuild

Firm will build 300 new homes at East London's Tiller Road Estate
17 hours ago

Northumbria Uni invites bids for £75m CHASE project

12-storey student block to be demolished for new Centre for Health and Social Equity
16 hours ago

Civils firm Akela appoints former Robertson director as MD

Framework expert Robert Ogg to lead growth at Scottish contractor
17 hours ago

McLaren to build new Hertfordshire primary school

Contractor to prioritise local suppliers on High Leigh Garden Village site
16 hours ago

Developer picked for Stafford town centre regeneration

ION Developments will draw up detailed plans for mixed-use Eastgate scheme
17 hours ago

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
2 days ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
3 days ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
2 days ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
2 days ago

Caddick steps-in at former Lane End housing job

Contractor to restart phase of £262m scheme hit by administration
2 days ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
2 days ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
2 days ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
7 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
6 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
6 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
6 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
6 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
6 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
7 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
7 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
7 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
7 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
7 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
1 week ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
1 week ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
1 week ago

Contractor services