South African giant buys Russells Construction

Aaron Morby 4 years ago
Share

One of the biggest construction groups operating in Southern Africa has taken a controlling stake in growing north west contractor Russells Construction.

Andrew and Gareth Russell remain as joint managing directors and shareholders
Andrew and Gareth Russell remain as joint managing directors and shareholders

It marks the second investment in a UK contractor by Wilson Bayly Holmes-Ovcon, which just over a year ago paid £12m for a 40% stake in London concrete frame contractor Byrne Group.

This time £1.8bn turnover WBHO has paid £32.8m for a 60% stake in the north west builder, set up by brothers Andrew and Gareth Russell in 1997.

Both brothers will remain as shareholders and joint managing directors, and in day-to-day control of the business.

In a separate deal, WBHO has also bought 32% of shares in sister company Russell Homes for £3.2m. Andrew and Gareth remain the majority shareholders in Russell Homes.

The tie-up will allow both businesses to grow and will unlock the potential for Russells Construction to compete for major projects.

Andrew Russell said: “It’s business as usual for our staff, suppliers and customers, there’s no changes in management or how we will be operating our business, but obviously this partnership opens the door for some exciting new opportunities for the future.

“We’re already competing successfully against many of the big national players and delivering major multimillion pound projects throughout Manchester, the North West and beyond.

“This investment supports the existing growth plan, to establish ourselves as a Tier 1 contractor.”

Russells Construction has more than quadrupled turnover in the last decade to £90m at the end of this financial year.

The business, which employs 160 staff at its Trafford Park headquarters, expects to post in excess of £104m next year, with a potential pipeline of a further £40m.

Russell Homes has more than 400 units in progress or delivered this year, with a further 1,500 in various stages of planning.

The growth model is one which has already worked for WBHO, which bought into Australian contractor Probuild Constructions in 2001 and has since expanded to become one of the country’s largest contractors within a decade.

Paul Foley from WBHO said: “We have been seeking growth opportunities globally and identified Russells Construction as an excellent strategic fit for our UK ambitions, with strong and steady growth, a secure forward order book, and a healthy pipeline.

“In addition, the investment in Russell Homes offers us entry into the UK residential market which is a particularly exciting prospect.”

Latest news

Osborne makes £45m construction loss

Sale of infrastructure business balances books as contractor looks for zero-carbon wins
1 day ago

John F Hunt forecasts record revenue and profits this year

Demolition contractor back on strong financial footing after previously setting aside £5.6m for bid rigging probe
1 day ago

Notting Hill Genesis names £2.8bn framework winners

26 firms land places on main contractor deal: Full list
1 day ago

Green light for dual hotel scheme at Nine Elms

Two new hotel towers will share common basement
1 day ago

Trials start on cement-free pre-cast piles

Aarsleff is hopeful a product will come to the market shortly
1 day ago

Ex-Telford Homes boss to run green house builder

Jon Di-Stefano takes helm at M&G backed Greencore Construction
1 day ago

Subcontractors told to stop work on Brymor sites

£80m revenue southern contractor files letter of intent to enter administration
2 days ago

House builder Chartway sold to private equity firm

Cabot Square Capital signs another major construction deal
2 days ago

Murphy Group appoints new chairman

Capita chairman and investment banker John Cresswell to start in November
2 days ago

Tolent seals £40m Newcastle ‘future-living’ housing job

135-home Vaux scheme will be first of four neighbourhoods totalling 1,000 homes
2 days ago

Cruden takes first job at £1.3bn Edinburgh Waterfront scheme

Preferred bidder named for first 750 net zero homes at new Granton Waterfront coastal town
2 days ago

Trio of student towers to be built at Brent Cross Town

Ground works under way with main contractor due to be appointed next month
2 days ago

Keltbray gets start date for £50m motorway upgrade

Contractor hails "significant step forward" for highways business
3 days ago

Site workers settle for 5% pay increase

Contractors and unions agree one-year deal following months of talks
4 days ago

Rising wages and skills gap to overshadow materials issues

Materials and product Inflation tops 20% so far this year, but labour set to be next big headache
3 days ago

Erith pays £2.8m bonus to staff after ownership switch

Around 450 staff have on average received over £6,000 since move to employee ownership five years ago
3 days ago

Algeco lands £19.2m Leeds modular school scheme

Offsite specialist will supply and install 192 steel frame modules
3 days ago

Eight firms placed on £750m Midlands and Eastern framework

Next generation framework for jobs up to £7.5m employs a parallel plotting structure
3 days ago

Aston Villa unveil plans for £100m stadium expansion

Construction set to start next year on first phase of Villa Park upgrade
3 days ago

Skanska bans ‘swing-up’ lorry loaders after site death

Banned vehicles are used mainly to deliver bulky items like cabins and welfare units
4 days ago

HS2 agrees £78m variation on Euston tunnels cost

Skanska Costain Strabag seals extra payment for agreed changes to the scope of work
4 days ago

B&K breaks ground at £150m Newcastle HMRC job

Work gets underway on city's largest ever office project
4 days ago

New building safety laws come into force today

Leaseholders protected and new regulator for construction product manufacturers in wake of Grenfell
4 days ago

Peel submits plan for £150m cannabis production plant

Isle of Man seeks to become a leader in the emerging medicinal cannabis sector.
4 days ago

Tarmac buys first electric concrete mixer truck

Country's first battery powered mixer truck will start site deliveries this Autumn
4 days ago

Tilbury Douglas wins Dorset hospital upgrade

Construction could start in 2024 after Dorset County Hospital secures £77.3m of funding
5 days ago

McGee in £2.4m provision for bid-rigging probe

Demolition contractor says provision will cover the expected fine over cover pricing ring
5 days ago

First designs for £275m HS2 Midlands nerve centre

Contractor due to be named in Autumn next year for Washwood Heath hub
5 days ago

London Bankside Yards next project switches from resi to offices

Revised plan submitted for 18-storey office next to Blackfriars Bridge
5 days ago

Plans in for Cambridge North major mixed-use scheme

Over 400 homes and nearly 600,000 sq ft of office and shops planned for railway sidings site
5 days ago

Contractor services